France, (which is morally impoffible in a country used to them) the other 200,000 1. will ftill be spent in France, in the education of their children and fupport of themselves; or elfe be laid up there, where they will always think their home to be.

Besides this confumption of British manufactures, much is faid of the benefit we shall have from the fituation of Guadaloupe; and we are told of al trade to the Caraccas and Spanish Main.-In what refpect Guadaloupe is better fituated for this trade than Jamaica, or even any of our other iflands, I am at a lofs to guess. I believe it to be not so well fituated for that of the windward coast, as Tobago and St. Lucia; which in this, as well as other refpects, would be more valuable poffeffions, and which, I doubt not, the peace will fecure to us. Nor is it nearly fo well fituated for that of the rest of the Spanish Main as Jamaica.As to the greater safety of our trade by the poffeffion of Guadaloupe; experience has convinced us, that in reducing a fingle ifland, or even more, we stop the privateering bufinefs but little. Privateers still fubfift, in equal if not greater numbers, and carry the veffels into Martinico, which before it was more convenient to carry into Guadaloupe. Had we all the Caribbees, it is true, they would in those parts be without shelter.

Yet upon the whole I fuppofe it to be a doubtful point, and well worth confideration, whether our obtaining poffeffion of all the Caribbees, would be more than a temporary benefit; as it would neceffarily foon fill the French part of Hifpaniola Dd 2

with

with French inhabitants; and thereby render it five times more valuable in time of peace, and little less than impregnable in time of war; and would probably end. in a few years in the unitings the whole of that great and fertile ifland under a French government. It is agreed on all hands, that our conqueft of St. Chriftopher's, and driv→ ing the French from thence, firft furnished Hifpaniola with skilful and substantial planters, and was confequently the firft occafion of its prefent opulence. On the other hand, I will hazard an opinion, that valuable as the French poffeffions in the West Indies are, and undeniable the advan-. tages they derive from them, there is fomewhat to be weighed in the opposite scale. They cannot at present make war with England, without. expofing those advantages, while divided among the numerous islands they now have, much more than they would, were they poffeffed of St. Domingo only; their own fhare of which would, if well cultivated, grow more fugar, than is now grown in all their Weft India islands.

I have before faid I do not deny the utility of the conqueft, or even of our future poffeffion of Guadaloupe, if not bought too dear. The trade of the Weft Indies is one of our most valuable trades. Our poffeffions there deferve our greatest care and attention. So do thofe of North America. I shall not enter into the invidious task of comparing their due estimation. It would be a very long and a very disagreeable one, to run through every thing material on this head.-It is enough to our pre

fent point, if I have shown, that the value of North America is capable of an immense increase, by an acquifition and measures, that must neceffarily have an effect the direct contrary of what we have been industriously taught to fear; and that Guadaloupe is, in point of advantage, but a very small addition to our West India poffeffions; rendered many ways lefs valuable to us, than it is to the French; who will probably fet more value upon it, than upon a country [Canada] that is much more valuable to us than to them.

There is a great deal more to be faid on all the parts of these subjects; but as it would carry me into a detail that I fear would tire the patience of my readers, and which I am not without apprehenfions I have done already; I shall reserve what remains till I dare venture again on the indulgence of the public.

Remarks and Facts relative to the American
Paper-money *.

IN

N the REPORT of the BOARD of TRADE, dated Feb. 9, 1764, the following Reasons are given for restraining the emiffion of paper-bills of credit in America, as a legal tender.

1. "That it carries the gold and filver out of the province, and fo ruins the country; as experi"ence has shewn, in every colony where it has "been practised in any great degree.

2. "That the merchants trading to America "have fuffered and lost by it.

3. "That the restriction [of it] has had a be"neficial effect in New-England.

4. "That every

medium of trade should have an intrinfic value, which paper-money has not. "Gold and filver are therefore the fittest for this "medium, as they are an equivalent; which "" paper never can be.

[The beft account I can give of the occafion of the Report, to which this paper is a reply, is as follows.-During the war there had been a confiderable and unufual trade to America, in confequence of the great fleets and armies on foot there, and the clandeftine dealings with the enemy, who were cut off from their own fupplies. This made great debts. The brifknefs of the trade ceafing with the war, the merchants were anxious for payment; which occafioned fome confufion in the colonies, and stirred up a clamour here against papermoney. The board of trade, of which lord Hilfborough was the chief, joined in this oppofition to paper-money, as appears by the report. -Dr. Franklin being asked to draw up an answer to their report, wrote the paper given above. E.]

5.

"That

"That debtors in the affemblies make paper-money with fraudulent views.

6. That in the middle colonies, where the "credit of the paper-money has been beft fup"ported, the bills have never kept to their nominal "value in circulation; but have conftantly de"preciated to a certain degree, whenever the "quantity has been increafed."

To confider thefe Reasons in their order; the first is,

1. "That paper-money carries the gold and filver out of the province, and fo ruins the country; as experience has fhewn, in every colony where it has been practifed in any great degree."-This opinion, of its ruining the country, feems to be merely fpeculative, or not otherwife founded than upon mifinformation in the matter of fact. The truth is, that the balance of their trade with Britain being greatly against them, the gold and filver is drawn out to pay that balance; and then the neceffity of fome medium of trade has induced the making of paper-money, which could not be carried away. Thus, if carrying out all the gold and filver ruins a country, every colony was ruined before it made paper-money.-But, far from being ruined by it, the colonies that have made use of paper-money, have been, and are all, in a thriving condition. The debt indeed to Britain has increased, because their numbers, and of courfe their trade, have increased; for all trade having always a proportion of debt outstanding, which

is