The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-30
CREDIT.

CREDIT--ls the confidence Whlch men put IN each
other II is based upon the intelligence, the honesty
the capital, and the favorable which be-
long To- the party in whom confidence is reposed, An
ignorant people, poor people, OK dishonest people,
never have much credit with each other, abroad
An intelligent vlrtuous, and prosperous people, will
have confidence each other, and inspire confidence
abroad. If goods delivered upon promise to pay
IN SIX Months the seller believes the buyer will be able
and disposed pay according to the contract and that
the credit OF the buyer thus pledged better to him
than the goods II goods delivered upon the
dIon that when taken to the buyers and examin-
ed, the money shall be Immediately back in pay
mcnt, the delivery made credit still, and in the be-
lief of the things which induce the credit of
months. II the buyer is permitted to take the goods
into his hands before he pays the money the transact
ton is still on credit and upon the same basis in the
other stated. There some individuals whose
characters SO bad, that this last ptance of
credit would not be granted them
In vlrtuous, intelligent, and prosperous community,
credit performs all the principal offices OF money: 1t IS
an adagc that trade is only exchange Of commodl
ties" hen the exchanges are made directly, the
trade is called barter" In very simple and small
community almost all transactions may be in barter,
with the Intervention Of credit to small exten, only.
In fact there many neghborhoods IN our country,
where almost no money is used The blacksmith shoes
all the horses the shoemaker all the and women,
and even the DOCTOR and lawyer and parson, perform
their several duties, and by means Of credits recorded
in book accounts, the whole business Of the year
these exchanges made, however, surplus remains
which goes to the merchant in payment for his goods,
aud perhaps brings little money into the place. What
is done thus small scale. Is only the immature Of
nations business The result is precisely the same,
thoughthe number and Importance of the agents en-
ployed corresponds with the Importance Of the business.
The surplus products Of every citizens industry dis
posed of and the proceeds returned IN other articles
which his wants demand. Just many agents and
means Of facilitating business will be employed as will
perform the whole IN tho cheapest and best manner 50
as to return 10 every the largest possible amount
oil comfort and enjoyment by the Of credit. the
money Of those who have money to spare, Is employed
to furnish those who deficient in capital, with the
OF cutvating the earth and carrying all their
occupations The merchant buys iron a credit, and
sells It to the blacksmith on credit, and he makes
ploughshares and chains a credit by Of which
crops raised which handed to the merchant,
and which he carries to tho larger market. Thus the
products Of industry carried back upon the line of
credit, aud the whole line Of Indebtedness cancelled
In all this there money and obviously need of
any Credit has performed all that money could do But
if there credit, where would be the farmer the
product OF whose toll was the result of all this credit,
as it was the means Of canceng it all He could not
have cultivated his ground but have hired himself
out to some farmer who had wealth, at best have be-
come his tenant !; is obvious that the destruction Of
credit would wthcr the business have described and
place every thing in the hands Of capitalists There
could be merchants, no blacksmhs farmers, but
those who had already sufficient capital to carry their
business by the use of ready money and where would
this rule have left -tenths OF the who cul
yae the ground and transact the business OF the
try They could have been only clerks and laborers
under the control Of the lords Of money Yet in this
land, where the people praised for their intelligence,
they who have little money, called upon to
JON IN the destruction OF the only resource which left
them, their naked hands This, too in the face Of
the fact, that almost all the individual wealth among
has been accumulated by the Of credit Worst of
all, they urged to do this which will
deprive the rich Of their overgrown power, when the
certain consequence would be, to deprive industry Of
all its power TO compete with wealth, and put every
thing the grasp nf thr rich To destroy any Of the
facilities by which credit is brought into its most perfect
action. is to do so much to make the many subservent
to the few This may take occasion to illustrate
another ilme.-N. Y. Journal Of Commerce.