Your thirteenth Letter Inquiry is, “Of what Resources might America hereafter Still make Use of?”

There are many Resources, yet untried, which would certainly be explored, if America Should be driven to the Necessity of them.

1. Luxury prevails in that young Country, not withstanding all the confident assertions of the English concerning their Distress, to a degree, that retrenching this alone would enable them to carry on the War. There are Expences in Wheelcarriages, Horses, Equipage, Furniture, Dress, and the Table, which might be Spared and would amount to enough to carry on the War.

2. The Americans might, and rather than the English should prevail against them they would be brought to impose Duties upon Articles of Luxury, and Convenience and even of Necessity, as has been done by all the Nations of Europe. I am not able at present, and upon Memory to entertain you with accurate Calculations, but in general it may be said with Certainty that if as heavy Duties were laid, upon Articles of Consumption, Exportation and Importation as are laid in England, or even in Holland, it would produce a Revenue Sufficient to carry on this War, without borrowing at all. I hope 236however they will never come to this. I am clear they need not. Such Systematical and established Revenues are dangerous to Liberty, which is Safe, while the Revenue depends upon annual Grants of the People, because this secures publick Oeconomy.

3. If there should be hereafter any Accession to the Population of America, by Migrations from Europe, this will be a fresh Resource, because in that Country of Agriculture, the Ability to raise a Revenue will bear a constant Proportion to the Numbers of People.

4. There are immense Tracts of uncultivated Lands. These Lands are all claimed by particular States. But if these States Should cede these Claims to the Congress, which they would do in case of Necessity, the Congress might Sell these Lands, and they would become, a great Resource. No Man can Say, how great or how lasting.

5. There is a great deal of Plate in America, and if she were driven to Extremities, the Ladies I assure you have Patriotism enough, to give up their Plate to the Publick, rather than loose their Liberties or run any great hazard of it.

6. There is another Resource Still. The War may be carried on, by means of a fluctuating Medium of Paper Money. The War has been carried on in this manner hitherto, and I firmly believe, if the People could not find a better Way—they would agree, to call in all the Paper, and let it lie as a demand upon the Public, to be hereafter equitably paid, according to its fluctuating Value in silver—and emit new Bills, to depreciate and carry on the War in the Same Way. This however would occasion many Perplexities, and much Unhappiness. It would do Injustice to many Individuals, and will and ought to be avoided, if possible.

7. A Loan in Europe, however, would be the best Resource, as it would necessarily extend our Trade, and relieve the People from too great a present Burden. Very heavy Taxes, are hurtfull, because they lessen the Increase of Population by making the means of subsistence, more difficult.

8. There are Resources of Agriculture, Manufactures and Labour, that would produce much, if explored and attempted.

I have the Honour to be with very great Esteem &c. John Adams

9. The Resources of Trade and Privateering, ought to be mentioned again. The real Cause of our doing So little hitherto is this. The Congress in 1774, agreed upon a Non Exportation to begin in September 1775.1 This induced the Merchants in every Part of America, 237to Send their ships and Sailors to England, from whence the most of them never returned.

The Consequence of which was that the Americans have been distressed for want of ships and Seamen ever since. But the Number of both has increased every Year, in Spite of all that English have taken and destroyed. The vast Number of ships and seamen taken this Year, will repair those Losses, and no man can say to what an Extent Trade and Privateering will be carried, the next and the succeeding Years.

I have the Honour to be &c.

The fourteenth Question is “What is the Quantity of Paper Money in Circulation? What Credit, the Inhabitants have for it, in their daily Business? What designs the Inhabitants have by maintaining its Credit? What by preventing its Increase? and in what manner do they realize it?”

The Quantity of Paper Bills, in Circulation on the 18 of March last, was Two hundred millions of Paper Dollars.

The Congress then Stated the Value of it, upon an average, at forty for one, amounting in the whole to five millions of silver Dollars, or one Million and a quarter sterling. This they did by resolving to receive one silver Dollar, in Lieu of forty Paper ones, in the Payment of Taxes. This was probably allowing more than the full Value for the Paper, because by all Accounts the Bills passed from hand to hand in private Transactions at Sixty or seventy for one.

The Designs of the Inhabitants, in preserving its Credit, as much as they can are very good and laudable. The Designs are that they may have a fixed and certain Medium both for external and internal Commerce. That every Man May have an equal Profit from his Industry, and for his Commodities. That private and publick Debts may be justly paid, and that every Man may pay an equal and proportional share of the Public Expences.

And this is their Design in preventing its Increase: because it is 238impossible, if the Quantity is increased to prevent the Depreciation of the whole in Circulation.

They realize it, in various Ways. Some have lent it to the Public, and received Loan Office Certificates for it, upon Interest, which are to be paid in Proportion to their Value in Silver at the Time of their Dates.

Some Purchase with it the Produce of the Country, which they export to the West Indies and to Europe, and by this means supply, the French and Spanish Fleets and Armies, both upon the Continent of America and in the West India Islands. Others Purchase Merchandizes imported with it. Others purchase Bills of Exchange upon France, Spain, &c. Others purchase silver and Gold with it—and others Purchase Houses and Lands. Others have paid their Debts with it, to such a degree, that the People of America, were never so little in debt, in their private Capacities as at present.

I have the Honour to be &c.