The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-12
THE cREDIT SYSTEM.

We wish the Globe would omit for one day
BANKERS CIRCULAR OF JANUARY 81" which
has adorned the head Of its editorial columns
for so many months; and place in its stead,
the following EXTRACT" from the work Of
M. CHEvALIER, who, unlike the London
Bankers, has visited this country Of which he
speaks; and speaks, too, not like them, Of a
banking institution, dead and gone, but Of ex-
listing institutions full Of life and vigour not
CALLED TO THE ARIsTocRAcY OF WEALTH"
but to the Democracy OF NUMBERS" as may
fairly be inferred, nay, Individually and posi-
lively shown, by the following statement made
by the President in his last message, after
expatiating upon the State elections thus ac-
counting for their unfavorable results:
above ALL we cannot overlook the striking fact,
that there at the time in those States than
one hundred and sixty millions of blnk aaPita Of
Which large portions icere SUBJECT 10 actual forfeiture
other large portions upheld only by special and lin
tied legislative ndulgencies-and most of it if not
all to greater or less extent, d,pendcnt for contin
aance Of its corporate ertasncs upon me ,rH OF ne
State Legislature to be then chosen. Apprsed of this
circumstance, you will Judge whether ii is not most
probable that the peculiar condition OF that vast
interest in these respects the extent to which il has
been spread through all the qualifications of society,"
its direct connection with the then pending elections
and the feelings it calculated TO intuse into the
canvass, have exercised far greater influence over
the result, than any which could possibly have been
produced b. conflict Of opinion in respect to
question in the administration ofthe General Go
vernment more remote and far less important in lis
bearings upon that interest.
AS Credit and Banks are inscparably con-
nected the President need not have been sur
prised to discover the " influence they hadin
the local elections, when their existence was
at stake and if they decided the election, it
but too plainly shows that every freeman who
supported them, knew that his own dearest
rights were at stake; else he would not have
Incurred the reproach of having deserted his
own party-banner to have defended them.
But to the extract-and we introduce it with
out farther comment
CURRENCY Extract from the work of NJ Cheva-
lier a liberal Democratic French traveller.
"Cred is the primary element Of life in the Uni
ted States; they live on it. Without credit, those
popuous towns which arise on all sides as If BY en-
chantment-those rich States which fringe the mar
gin of the Atlantic which stretch to the west of the
Allegheny, and extend along the course of the Ohio
and Mississippi would have been still savage forests
and bottomess morasses. New York alone possesses
twenty banks; the of its annual discounts is
f25 900 O00 whereas at Paris the total discounts of
the Banks were, in 1881, f9000,O00; in 1882, only
f6OO0O 900. AT Philadelphia, in 1881, the discounts
rose TO f32 100000 general shake to credit, even
for the shortest time is here more terrible than the
most frigh,ful earthquake. The banks have acted
ms the lever which has enabled the Americans 10 es
tablish among themselves, to their own grea, profit
The agriculture and industry of Europe, and which
has covered their territory with cities, canals, rail
roads manufactures and fertile fields; in word
every thing which constitutes civilization Without
the banks the cultivator would have been destitute of
capital for his most necessary advances; he would
have had no instruments for cleoring Of his farm;
and il the sysenrhas led in many cases to absurd
and gambling speculatons il is the same system
which has enabled the farmer to purchase land for
two dollars the acre. which he afterwards sold for
ten or hundred. The mechanics, who arc now SO
loud in their condemnation OF the banking SYSTEM
forget that it is TO it that they the industrious &C
ivily which has enabled them to earn from five to
eight shillngs day of wages. They forget that it
is il which has furnished them with the means, of
which so many have availed themselves of rising to
opulence and comfort; for in America every enter
prising who can give the guarantee of ,loera-
Bile character is sure Of Obtaining credit and thus
has the means of making his fortune"