In this letter to John Taylor, Thomas Jefferson has a very interesting and extended discussion about the true nature of republicanism. He defines it quite narrowly as “a government by its citizens in mass, acting and personally, according to rules established by the majority.” He then proceeds to list all the offices and branches of government where the practice falls short of the ideal, in other words where it has “deteriorated” from the founders' hopes and expectations. He blames this deterioration on “submission … to European authorities”, the existence of “speculators on government”, and to “the duperies of the people.”
In the course of this exposition, Jefferson writes an extraordinary attack on the banking system and public finance, calling the former “a blot on the constitution”, corrupt, and destructive of wealth; the latter he describes as “more dangerous than standing armies” and “swindling futurity on a large scale.” This dour essay is lightened up considerably by Jefferson quoting part of a poem by Sir William Jones (1746-1794) on “What constitutes a State?”. His answer is not the physical infrastucture like battlements, moats, ports or church spires; but “high-minded men” who know their duties and their rights and are willing to defend them against tyrants. That is a true state according to Jefferson.
