Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1821-08-11

CURED rs much capital as they could a.
f.ably employ, considering their ,p
| number of laborers; or, if they had
| the abuse OF the credit system was in =, L
We still, however, continue to buv NJ =,
Europeans On credit; although Car
MED men know not in what manner - ~
vest their funds SO that they NAY Weld d
profit.
The same cause that rendered Anna,
debtor 10 Britain, made the rich -"
mist creditor of the poor one. Tba
Dor of the latter would, properly ami.
yie.d revenue which would suprIrrI 4
with the necessaries and comforts nf =, I;
and in time pay for farm. The ,n,. 4
knew this, and sold him lands and aaa,
on credit, or lent him money to pur sSS
the same. The advantages were rso;"
cal. The one derived revenue f,omfI
capital, the other from his iDdustrn
This was the proper kind of credit :,
would have continued to the present A..
but for the measures which have e,,.a
ed the system far beyond its uses ana |
beyond what the abettors of those ms
sures ever expected or intended ~
The spirit which prevailed in socis,
soon infused itself into public affairs s,l
paper was issued, in some instances ~ ~
fray the expenses of government, in o@
ers, to supply the lack of capita Ta u
consequence OF thus mortaging the fn,n''
revenue of the state, and the produce Is
the future industry of the people. are we'll
known to the majority of our reader.
They were like those which, in our or,
days, have resulted from banking. on.
they were less extensive and less dn,
bic.
Another cause of the super-extens,, Z
of the credit system, is the want OF srr
culating medium. We never We; b,v.
had money enough to serve tie purpO,
which money is des gned to answer in 50
clety; and, what is more, we never sh.Ii
have, while our present policy is persist
ed in. Where money is wanting. mey
nave recourse to barter or to credit an.
running accounts supply the place of cas-
payments. Issues OF paper instead of ms /
king money more plentiful, make it sea
Ger, for they drive it from the country,
it is easier to drive it away than to brir
it back again. As for some time after!
country was settled, it was understood
with capital, the want of money. which n
part of national capital, was the cons.
quence of necessity: in our own times ID
Is the consequence Of folly.
The apprehension of the credit sysl
tem at tn. present day, is partly owing I'd
the continuance Of a practice the use Of
which has long since ceased; but prime;
pally to the policy of government, as di.I
played in the credit it grants upon in
posts, the sales of public lands on credi.
and the establishment of innumerabl|
banks.
That granting credit on duties extens
our foreign commerce cannot be denie
our sole concern with it at present rela,
to its effects on the home trade OF Il
country; and it must be evident to thcs
who take the trouble to enquire into tn
subject, that the system we are now e.
aiming depends in measure upon this
part of our policy. Let the importer b.
obliged to pay the duties with cash, and
the coun ry merchant will be obliged b
pay the importer, and the consumer ii.
country merchant. Whether the effect
this change would have on our foreign
trade is desirable or undesirable, is anoth
err question. 1t is certain that the present
policy extends the credit sys en-, ard thiI
is the only point of view which we an
now considering it.
Like to the practice Of deferring It'd
payment of duties, was that of selling tiki
public LANDS On credit TIE abuses a.
tending on this, were, however. SO mary
and SO obvious, that it has now fallen in
TO disuse. Its effects, while it lasted were
deplorable. We hope it will never be re.
vived.
Lastly and principally, the super -e1,
tended system of commercial circuit has
been promoted by excessive Banking
This il the key stone of the arch, SO beau,
tltul in appearance, but which falling, has
buried under its ruins all that were with
in its reach.
The business of bank is lending IT.
peculiar gain, Che only thing which in
duces individuals to associate in this bust
ness,) arises from the amount of bills Of
credit which it can circulate over and
above the specie in its vaults. These are
a kind of mortgages, not on the capital OF
the bank, but on the produce of the future
industry of the community in general;
for, by singular kind of legerdemaiA
the banks, instead Of paying interest 81
their bills of credit, receive interest fs
them from the people, and it is this whca
ultimately enables them to redeem tier
snrnlus issuas Thee isspes are CONT