est importance to the productive energies of a country. Foreign missions (which have been attacked by infidel political economists) are in accordance with the strictest lessons of Political Economy. Make Christians of men, and you civilize them, you render them industrious and frugal, and consequently rich. The resources of the country are developed, it becomes a better customer to other nations, and gives additional impulse to their industry. Facts in the history of missions, we add, are in keeping with the truth of these remarks. Godliness is thus profitable unto all things, having the promise of the life which now is and that which is to come.

Our readers will be desirous of learning our author's doctrines in regard to "discriminating, or, as they are frequently called, protecting duties." He is a thorough-going advocate of the liberal system. Such duties, he thinks, cannot increase the capital of a country, or increase the number of its labourers; if then it have any effect on production, it must be by creating a greater stimulus to labour. In opposition to this, he shows that the stimulus to labour is decreased in a variety of ways; that it injures our foreign inarket, and creates a change in the course of industry and of capital in a nation highly disadvantageous. We give only the results of his reasonings; the limits assigned us will not allow of an analysis of his processes.

Bounties are the same in principle as discriminating duties; they are less objectionable, because the price of the article is not visibly raised, and hence the consumption is not so much diminished: they are cheaper moreover, for we pay only for what is made; while by discriminating duties we pay the same, whether any thing is made or not.

Dr. Wayland next considers at large the objections that have been offered to the doctrines he has laid down. We shall not present an analysis for the reasons above assigned. We would remark, that we consider his reasonings in support of the liberal system as sound, and his answer to the objections usually urged against that system as satisfactory.

While we thus cheerfully agree with our author, we regret that he has said nothing respecting exceptions to the general rule. We are disposed to believe that the exceptions are extremely few, yet, owing to a variety of causes which we need not here specify, and some of which are not perhaps strictly economic, we think there are exceptions, and in a treatise like the one before us, the fact, at least, ought to be stated. There is a tendency on the part of the people of these United States to cry out for "free trade," "no monopolies," &c., and to rush, as usual, into extremes. This spirit needs to be repressed ra

ther than fostered; and something could be done towards this by a statement of some of the exceptions to the general principles of free trade. Most, if not all, of the ablest advocates of this system have admitted that such exceptions exist. We regret that Dr. Wayland has not done the same, and so far thrown the weight of his influence into the conservative scale.

Government, he thinks, should promote the industry of a nation by originating knowledge, which must otherwise be obtained at great individual expense-by experimental farms, of which the results should be registered and published; and " by experimental manufactures, which might show, from time to time, what branches of manufacture could be profitably introduced into a country, and how they might be most successfully conducted," and by "confining themselves to their own appropriate duties, and leaving every thing else alone."

The agency of government in regard to coin should be confined to regulating its purity, its form and size. Government has no right to prevent the exportation or importation of specie, nor arbitrarily to alter the value of money, nor to fix the relative value between the precious metals.

The subject of Banks is treated at large by our author in a very clear and satisfactory manner. He gives a large amount of information, that every man ought to possess before he ventures to converse or discourse on the subject. But on this subject as on others, men are prone to be oracular in proportion as they are ignorant. We shall give our author's thoughts on a few only of the topics connected with this extensive subject. And first, of "the advantages of banks as institutions of discount and loan." Banks do not create capital, but they "are capable of rendering the existing capital much more productive;" and they do this by the facilities which they afford for the extension of credit. If the labourer have not tools, unless he can procure them on credit, he can produce but little; so also if he have not the material on which to exert his industry. By means of credit, those who possess more capital than they wish personally to employ, may, without labour, derive from it an equitable revenue; and those who have less than they can profitably employ, can procure it, and thus be enabled to enjoy the full benefit of their skill and industry.

Banks collect together capital which would otherwise be scattered and useless, profitably employ the capital of such as cannot unite with it the labour necessary for its productiveness, such as widows and orphans, and such gains of the labourer as cannot be used by him till he has accumulated a considerable sum; also the capital of those whose business cannot be in

creased by an increase of capital-as the physician, lawyer, clergyman, and in many instances the merchant. They are useful thus to every class in the community. The utility of banks would be still further increased if they were in the habit of receiving small deposits on interest to be drawn for at the pleasure of the owner. This is the case with the Scottish banks, which are better conducted than any institutions of the kind at present known. The following is Dr. Wayland's account of them :

"1. As offices of deposit, they receive all sums, not less. than £10 sterling; and, for such deposits, allow interest. Less sums than this are placed in the savings' banks, until they become sufficiently large to be deposited in a bank. These deposits are, generally, made by persons who labour in agriculture or manufac tures. The whole amount thus deposited is equal to about twentyfour millions pounds sterling, or not far short of one hundred and twenty millions dollars. This large sum is thus redeemed from idleness, and added to the productive capital of the country.

"2. They discount notes as our banks do, but they have another mode of loaning, which is called cash credits.

"When a man wishes a cash credit, he finds bondsmen, who promise to indemnify the bank for all that it may lose, by loaning to him within a certain sum; or else he places real estate in the power of the bank, to a sufficient amount to render it secure within the sum which he wishes to borrow. The bank then opens with him a cash account, or allows him to draw for any sum within the specified amount. He is charged interest only for the amount which he borrows. As fast as he is in funds, he deposits all he can spare, in the bank, and, for every thing thus deposited, he is allowed interest; so that his interest on deposits always diminishes the interest on his debt. Thus he borrows and pays, successively; and, at stated seasons, the accounts are adjusted.

"The advantages of this system, are: 1st. That it enables an in. dustrious man to procure credit to the amount of his real estate, and, hence, to do more business with the same capital than any where else. 2d. That by rendering every deposit valuable, it stimulates him to frugality. 3d. It enables the bank to understand, more correctly, the state of affairs, and, hence, to know how de. serving he is of confidence. 4th. That this may be done with greater safety, than in any other mode, is evident from the fact, that while the Scottish banks have been liberal in their accommoda. tions, and have, by the acknowledgment of all, been of the most important service to that country, but one of them has ever been known to fail. These are, surely, the best evidences of the wisdom of any practical system." p. 288-290.

Banks are useful as institutions of circulation, by furnishing

to the community a cheaper article of exchange. of the benefit is easily estimated.

The extent

"If the whole of the metallic circulating medium were exchanged for paper, we should have the benefit of the interest of this whole amount. If twenty millions of specie were wanted to carry on the exchanges of this country, and the whole were exchanged for paper, we should be benefitted to the amount of the annual interest of twenty millions, or, at six per cent., of one million two hundred thousand dollars per annum. If three-fourths of it were sent away, our bene. fit would be equal to nine hundred thousand dollars per annum. This is the whole pecuniary advantage of a paper currency over a metallic. It consists in substituting a cheaper, for a dearer circu. lating medium. And, our advantage, supposing the cheaper to be equally good, is precisely equal to the interest of the difference.". p. 291.

A paper circulation is more economical; for the material is cheaper, the wear and tear less expensive than that of gold and silver, and it allows a considerable portion of specie to be exchanged for other capital. It is more convenient, is less liable to robbery, and more easily identified if stolen: on the other hand, it is especially liable to forgery, fraud, and fluctuation. Forgery or fraud can of course never take place but through design; fluctuation may arise on the part of the banks either from want of skill or foresight, or from want of integrity. But the "disadvantages of fluctuation, both from unskilfulness and from fraud, do not belong exclusively to banks, but are liable to exist under any circumstances, in which money is loaned and borrowed." When, however, such a state of things exists, the blame is always laid upon the banks. Again, in times of scarcity, the banks are censured because they will not loan more money.

"A bank," says Dr. Wayland, "if it be honest, and mean to pay its debts, has its limit, beyond which it cannot safely pass as truly as an individual. When it has arived at this limit, its loans must cease. A merchant, who has involved himself in large transactions, expecting that he could borrow as much as he chose, is now disap. pointed, because his expectations are not realised. But what rea. son has he to complain? The bank never promised to lend him, when it had nothing to lend; nor to ruin itself, for the sake of saving him from the consequences of his own headlong improvidence ; especially, when by doing this, it must involve, not only itself, but him also in ruin. The bank was no party to his engagements; it derives no benefit from them, and it is under no obligation to enable him to fulfil them. The only remedy for these evils manifestly is, for both parties to be willing to grow rich more slowly, and thus to assume less formidable risks. When a whole community has run into trans

actions beyond its means, and has become embarrassed, there is very little gained by the abuse of banks and of bank directors." p. 307.

When a community have chosen a paper instead of a metallic currency, the government should take such means as will be likely to give all reasonable security to the currency, and to diminish fluctuation. Fluctuation will always be less when the proportion of specie to paper is great, and vice versa. Hence the proportion of specie should be too large to be affected by any thing but large and long-continued exportations of the precious metals. This can be effected by prohibiting the issue of small bills. Further, an exact account should be kept of the amount of specie imported and exported, and made public at short periods. This would enable the banks to regulate matters so as to prevent any extensive evil. The author thinks the government has no right to interfere with the currency for any other purposes than those above specified.

"If it do interfere," he remarks, "such interference is manifest usurpation. It has, for instance, no right to interfere with the currency, because the people import too much, or because they import too little, because they buy too much land, or because they buy too little land, because they over-trade, or because they under-trade. Its power was conferred for no such purpose, and to use it for such purpose, is usurpation. To all such interference, the proper answer to be given by the individual to the government, is, that all this is none of your business.

"Nor is the principle, in this case, at all affected by the patriot. ism from which such interference proceeds, or the paternal solici tude by which it may have been dictated. The parental authority and the parental responsibility cease, when the child has become of age. And whoever may assume to be the Father of his country, it surely is not too much to claim for the people of these United States, that they have at least attained to the period of majority." p. 312.

Our author thinks it is far better that banks should be connected by some institution like the late United States Bank, rather than isolated institutions. In regard to the number of banks, he says, "Let all banking be governed by principles that shall insure the safety of the community, and then let banks be multiplied at will. If they yield more than the usual profits of capital, they will be increased until their profit is reduced to that of other business; if they yield less, they will be diminished until they merely supply the wants of the community." The subject of Population, which has formed so fruitful a theme of disputation among political economists, is noticed by our author only incidentally. He makes no reference to