The erection of manufacturing establishments was recommended some time ago by intelligent citizens, who foresaw that the money capital of the country could not long supply the great efflux of specie. Now, a change of policy becomes a matter of necessity. It is chiefly to be regretted several State legislatures are too active in forcing the circulation of degraded money;--a procedure which, in the meantime, retards the natural subsidence of the convulsion, and keeps property out of the hands of its real owners. However far they may succeed in procuring indemnity for past peculations, their efforts must be impotent in opposition to the future interests of mankind. The paper currency that they strive to support falls in spite of their utmost exertions. I now find that my expense of living or of travelling is nominally the same that it was in the autumn of 1818. At that time I paid in specie, or in money, which {247} was considered as nearly equivalent to it, but of late I have on various occasions found that paper is accepted which is 50 per cent. worse than silver. A person who collected a salary to the amount of about eight hundred dollars, told me that he had received only five dollars of that sum in specie. You can easily perceive that, under this state of things, very few will give specie to the tavern-keeper, grocer, or others, while he can previously procure for it one and a half times, or twice its nominal amount, in what is called current paper. Most of the small towns have a person who follows the business of money changing; and merchants and other persons transact in that way, so that specie is almost entirely withdrawn from retail business, and applied to the purchase of public lands, or other objects, for which depreciated paper would not be accepted of in payment. Under this condition, an unsettled or precarious sort of internal trade is carried on, but it is impossible to import foreign goods as formerly.