6372. PAPER MONEY, Redeeming taxes.—
M. Say will be surprised to find, that
forty years after the development of sound
financial principles by Adam Smith and the
Economists, and a dozen years after he has
given them to us in a corrected, terse, and
lucid form, there should be so much ignorance
of them in our country; that instead of funding
issues of paper on the hypothecation of
specific redeeming taxes (the only method of
anticipating, in a time of war, the resources
of times of peace, tested by the experience of
nations), we are trusting to the tricks of
jugglers on the cards, to the illusions of banking
schemes for the resources of the war, and
for the cure of colic to inflations of more
wind.—
To M. Correa. Washington ed. vi, 406.
(M.
1814)