est was accompanied by, and proved the low price
of labor and of the productions of industry."
Now this position, Mr. M. considered essentially
erroneous and the very reverse of the fact. A
low rate of interest procured the abundance of
money, and abundance of money always and in-
evidently produced enhancement of the price of
labor and an, increase in the price of all the pro-
ductions of labor; this was plain to the simplest
understanding; was proved by every man's expe-
rience, and as certain almost as a mathematical
truth. As regarded supply and demand and re-
lative values—money and all other articles of
commerce, the productions of industry, occupied
antagonistical positions—might be considered as
being in opposite sides of a balance, whenever
one side went down the other must of necessity
go up. Whenever money becomes plenty and
easy of procurement, other things would in-
crease in their money price. These truths had
been illustrated a thousand times, and were illus-
trated by the facts with which we were now
surrounded; money is becoming plenty, the rate
of interest is falling, or what is the same thing,
interest bearing stocks are rising in the market,
and labor, and all the products of labor, are con-
sequently rising, and have greatly risen in price.
Look at your two great staples—cotton and tobac-
co—they are both worth more than double the
money they would have commanded a year ago.
Look at the price of slaves, a direct evidence
here of the value of labor; they are now worth
and will command nearly double the price they
have sold for a year since. The position assum-
ed by the honorable gentleman is therefore er-
roneous, and this error runs through his whole
argument and .destroys therefore all its force.
But the gentleman, (Mr. Thomas,) has said, if he
could be certain of the results, he would be will-
ing to borrow at three per cent. and pay off debts
bearing six per cent. interest. Can any thing
in nature be more certain in its results than such
an operation? Even if the gentleman's theory
about relative values and fluctuations in prices,
were correct, still it would not affect the results
of such an operation. Suppose the time to have
arrived when the State owing ten millions of dol-
lars of six per cent. bearing debt, and therefore
paying annually six hundred thousand dollars in-
terest, when the rate of interest is but three per
cent., and she can therefore borrow other ten
millions at three per cent, and pay off with it her
six per cent. debt, upon this new loan she will
thereafter have to pay but three hundred thousand
dollars annually for interest, and her other debt
will be extinguished. Will she not certainly and
inevitably have made or saved the sum of three
hundred thousand dollars annually—the sum of
the difference between the interest on the new
loan and the interest she has heretofore paid and
would still have had to pay upon the old six per
cent. debt had it not been extinguished in this
way? This again is certain as mathematics and
figures can make any thing, and entirely inde-
pendent of all fluctuations in prices and values,
let them rise and fall as they will, or be govern-
ed by what laws you please This operation once
performed, the gain to the State of the three hun-

dred thousand dollars annually is certain, and
will be so as long as it is certain that three and
three make six, or that three is the half of six.
Let us illustrate by the case of an individual.
Suppose some member of this Convention to owe
his neighbor on bond at six percent, interest, fifty
thousand dollars, and has therefore to pay him
three thousand dollars annually. Another neigh-
bor has and is willing to lend this debtor fifty
thousand dollars on his bond at an interest of
three per cent. He borrows of this latter neigh-
bor and pays off the first, and thereafter has to
pay for interest but fifteen hundred dollars an-
nually! Has he not profitted, gained by the op-
eration, or rather saved by it one half the inter-
est on his old debt, fifteen hundred dollars a
year ? Nothing could be plainer nor more cer-
tain.
He would concur with the gentleman in re-
stricting the power of the Legislature in any
way, no matter how closely, so as to prevent all
further appropriations to works of internal im-
provement. He knew such a restriction would
be desirable and acceptible to his constituents—
and no matter what might be his individual
opinions, knowing their wishes, it was his duty,
as it would be his pleasure, to carry them into
effect. But he was anxious to see the power left
with the Legislature to avail themselves of the
good times, which were coming and to come, for
debtors, to relieve, as far as possible, the people
of Maryland from the burthens they had so long
nobly and heroically borne. He was fully and
sincerely opposed to the contracting of any
further debt, whatsoever, by the State. But
there wag a large debt yet to be paid off, and for
its speedy payment he wished to see that line
of policy pursued, which it appeared to him was
equally dictated by plain common sense, and the
maxims of an enlightened political economy.
Mr. THOMAS wished to say a few words. Sup-
posing that the State could borrow at a lower
rate of interest for the purpose of paying off a
debt at a higher rate, still he would oppose the
transaction, because the lender would require
that the loan should run for a long period, and
the stock would be an instrument for speculation
in the market. He repeated what he had belore
said, as to the relative value of money and labor,
and the effect of the fluctuations to which they
are liable. In his retirement, he said, that he had
perused the message of the late Governor of
Maryland, and, (he spoke with the highest per-
sonal respect towards that gentleman,) he could
not but feel astonished at the doctrines put forth
in that message, in which he recommended a
continuance of taxation. Now he, (Mr. T ,) had
always supposed that when there was any surplus
in the Treasury, if there were no bonds which
required payment, the surplus ought to be guard-
ed against, by the reduction of taxes. It ap-
peared by the report to the Legislature, that
there was a surplus in the treasury. It would
have been proper, in these circumstances, as
there are no bonds payable for many years to
come, that the taxes would have been diminished.
He referred to the period when, after the war of
the revolution, the general government bound it-