University of Virginia Library

TO JAMES MADISON.

Hond Sir,—The extreme badness of the roads and
frequency of rains rendered my journey so slow that I
did not reach this place till Saturday last. The only
public intelligence I have to communicate is that the
great and progressive depreciation of the paper currency
had introduced such disorder and perplexity
into public affairs for the present and threatened to load
the United States with such an intolerable burden of
debt, that Congress have thought it expedient to convert
the 200,000,000 of Dollars now in circulation into
a real debt of 5,000,000 by establishing the exchange
at 40 for 1: and taxes for calling it in during the ensuing
year, are to be payable at the option of the people
in Specie or paper according to that difference. In
order to carry on public measures in future money is to
be emitted under the combined faith of Congress and
the several States, secured on permanent and specific

funds to be provided by the latter. This scheme was
finally resolved on on Saturday last. It has not yet
been printed but will be immediately. I shall transmit
a copy to you by the first opportunity. The little
time I have been here makes it impossible for me to
enter into a particular delineation of it. It will probably
create great perplexity and complaints in many
private transactions. Congress have recommended to
the States to repeal their tender laws, and to take
measures for preventing injustice as much as possible.
It is probable that in the case of loans to the public,
the state of depreciation at the time they were made
will be the rule of payment, but nothing is yet decided
on that point. I expect to be more at leisure to write
fully by next post.