The enquirer. [volume] (Richmond, Va.) 1804-1815, 1804-07-28

crelf. in the aliYe capital of a country sppes-s
therefore 90 occalion certai, ii,creaie in the
qaaut,ty OF prav.hons, raw materials or !inihed
worE III oites yrcriS. il appears 10 incrlaie the
wealth or ne country.
| Bat 'ftfe 3-odUIiSe 7iSxsrY OF every country
were entirely dependent III ~ the quantity ~ its
eric capital; it The labourcr would not work
! unieis he expected tha. his worl, would be paid
for iDanedia!eiy after it was complicated, or the
foc&hol1sr would not employ his capital in tue
production or pIrc.afe of goods uulefs he e.;-
psSted thst his capital would be imriec.iately re-
placed to him by the perion 70 wnorn he fold
the goods, comfortable part of this indufry
ana this flock would DC unemployed and I'M
pro1nctire. a !hocmakcr, for infance, who
was determined rot 10 work until he was GER
tain that ms cufCmcr would pay for his
ihoss as ioon As they were made, might
ne idle a comfortable pIrt of his time.
All the Manufacturers woult thus produce
much Enaeg quantity of work, from the want
of a ready AID active capital in the hands of
their cu'toiners: And every agricuiuriR IL the
country would produce fewer provihons and
raw materials, or he would fell them at lower
price, beCauie there would not be capital in
the handS oftre merchants in'ilcicnt to purchafe
them, as fJoh as they came to maries. Thote
on the other hand, who ihould win to become
purchafers, might experience great pcrlonal in
convenience, or they might lole the tsireit chan
ces or accommodating property from the want OF
an active and ready capital. Meanwhile they
might nave II in their power to give every necef-
fairy aiurance, that little or no rfl; would be in
CURED by allowing a crctlit that at a iti-
pulated time, an ADEQUATE remuneration would
be made, or that at al events the ,nof ample in
Identification would be injured. Il farmer for
example, might freouently find il to be his inter-
cit to Tell his corn To merchant, VINO might
have no ready capital to pay him for it. The
merchant may probably expcct to receive a CO.
pital from fomc other fource, before the period
Can arrive when this debt becomes due, OF h,
may intend TO derive capital from the fale Of
the corn iiieif, before the time Of payment ar
rlveS al all events, lie or foILe OF his friends
may have 1t IN their power to pledge, at the
time ofthe contract a fuf'cient amount OF dead
capital, to niure to the ieiler compleat indeal-
nitcation. /. the productive iudultry of every
country, therefore, wereentirely dependent upon
It's active capital, it is obvious, that a tnailer
portion OF lahour and flock would be brought
| INTO action, than what might DC otherwile en-
plOyed, and 4 tnaller addition would be made
| every year to The wealth of tie nation. Hence
1t is eafy TO perceive the immeh(e importance of
fold credit, which being predicated upon the
| Ialth of a capital that actually exits, hut which
at that particular time cannet be called into &C.
ton, may fervc to multiply the productive indui-
Try of the country, to increaie the quantity of
prCvihons, raw materials ard fniihed work in
other words to increaie the wealth OF the coun-
try.
An active capital and iubftantial credit nav
thus be confidered as the two great pillars of
national wealth. Whatever tends to increai.
either of them in fociety where there is A de-
,nand for them, and where they may be ufeful-
iy employed, tends confsquently to increafs its
real all M 4 Z
ed onlyin the ordinary way, by induary aud
pariimony; by labouring hard, and by favinS
fome of the produce of this laborr. But there
ieveTdi ways OF extending credit, ctltteringin
the manner of their operation, ard in the degree
of e';tenfon which they give to this credit.
Letu fuppofe then that a merchant wifles
to engage in fone profitable Ejaculation, but
that nc has no ready money to employ for this
purPofe. He poisiIss however, fuficient re-
| ioufces to pay at future day any debt, which
he may contract, at the prefent time. He has
capital, but that capital is inactive. Il lies in
the form of lands or houfes, or goods, or debts
which will be due to him at the end OF so days,
or Bills OF Exchange payable IN so days. II ne
can make no uie of thefe funds in Carving on
this speculation, ne iofes perhaps an admirable
opportunity Of accommodating money and extern
ding MS Telources. He 6rlt attempts 10 diCcount
the Biils OF Exchange but in this attempt he Is
iFuiCfateC Oy The hlSh rate Or dlicOunt. III then
ne has no Bills Of Exchange, OF If lie be unable
20 difcount them at a proper rate, his only re-
iources will be, either to borrowa ready capital
(Which may be briefly expreffed by the word
rnoney)orto obtain a credit by givinghis note, or
a written Obligation to pay it at the expirati-
on Of certain time, when he hopes either to
collect fonae OF his debts, to fell ioe CT his pro-
perty at )idta6le rate ofValuation, or to make
profitable iale ofthe very commodity which
ne IS now anxioustopurchafe. tisimpofible
perhaps to borrow the money at ali, OF without
paying mot eXorbitant intereit for il. His on
ly refource therefore is, TO give his own note
payable at the end ola certain time. But per-
haps the feller will not content TO take his note at
all, or he wllnot take it, without augmentine the
original price of his goods by iuni he may iii5-
poie TO be equal to the riik he encounters, ana
to the Inconvenience oflaying out OF his mo-
ney, until the note becomes due. Thefe notes
are never taken at par, nor can they be diC:oun-
ted at the uiual rate of interct. Ia Richmond
at the pre!et time, it is mpolIibl9 to negotiate
the notes of the mott punctudl merchants, at a
lower diicount than or 9 aud a.haif per cent.
per month which is four or five timeg greater
than the legal rate of interef. As no merchant
therefore can purcbafe thsfe goods upon credit,
without paying an additional price for them, e.
quail TO the riik and Inconvenience which the fsl-
Ter experiences, he will Re frequently prevented
from making this purchafe. In the fame manner
III the T1pEfirn b fp,,,la,I n.