The principalities of Neufchâtel and Vallingen are about twelve leagues long, by eight at the broadest part; the soil is far from fertile, but the industry of the inhabitants renders it astonishingly productive. Any person having a certificate of his general good conduct may settle here, and enjoy every essential privilege of the native subjects. This is perhaps the only country in Europe _exempt from taxes_; for the payment of a few sous annually from every householder cannot be considered as a tax. This circumstance lessens our astonishment at the commercial activity which prevails in this little state, the population of which exceeds 40,000. The villages of Chaux de Fond and Locle, with their districts, contain about 600 inhabitants, and furnish annually 10,000 watches in gold and silver, besides clocks. There are also numerous engravers and enamellers. The country is celebrated for its wild beauty; and our excursion, which occupied a day, was pleasant. The Protestant is the established religion of the state, with the exception of the little town of Landeron, where the Roman Catholic religion is maintained. It is recorded, that the inhabitants, having assembled to deliberate, which of the two forms of worship should be acknowledged, the numbers were equally divided. It being however discovered, that a shepherd was absent, he was sent for, and having given his vote, that the Roman Catholic religion should be continued, it was decided accordingly. The town of Neufchâtel is much indebted to one of its citizens, David Riri, who expended three or four millions of livres in works of public utility. Another individual built the town-house, which is a handsome edifice of the Corinthian order. The little brook called the Serrieres, which does not run above the length of two gun-shots before it falls into the lake, turns a great number of mills of various kinds. Having been much struck with the spirit of industry and activity which distinguishes the appearance of this little state, I felt anxious to inquire concerning the government, and a gentleman of this town, to whom I was introduced when at Geneva, was kind enough to give me ample information on the subject. As I say but little respecting the history of _large states_, perhaps I may be excused for the following details, which I think possess some interest.