Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1838-08-17

value of the articles in the hands OF the
consumers, and hence we have q rule by
which to estimate the amount of all the
specie, necessary to form the basis of oil The
business in the country, the gross amount
Of all the products of industry in any given
year in the hands of the consumers. Tho
atoms and changes from the raw
article from the farm or the mine to its fin.
ished state are different according 10 the
nature of the article, but may be said on an
average to be three, and If so the specie
should bear the proportion of one 10 three
to the whole amount of the credits. These
credits are the currency. think the pro-
portion between the currency and specie 10
as three TO one. The basis of these sever.
al credits is the property at oil times cons
vertible into cash in the hands of the debtor,
thus the Banks trust The Bradleys because
they know they are sklful men and will
have an equal amount in wool, convertible
into cash, and 80 in all the other stages Of
the circulation. 1t is then this property
that is trusted, and not the bodies of the
Bradleys, and this property alone should be
holden for payment, and not their useless
bodies. Bradleys from their ability may
obtain credit independent of the wool, but
that makes nothing against the principle,
| for still it is property that is trusted. Any
man can get credit who has an established
character for integrity, when from his INTEL
I hgence and skill! it is believed the money
will be prudenlly invested in stock convert
| lbe into cash. This is the secret of our
prosperity, it is this which has caused our
late uuexampled success, and it is the want
OF this that has broken up this circulation
and brought dsmay and ruin upon us.
1t will be readily seen that according to
| the rapidty of this circulation will be the
Indictment to industry. AS manufactures
abound, the more the purchasers of wool
and other articles from the farm will in-
crease, and consequently, the greatest
inducements will be held out to the farmers
for vigorous exertlon, and active enterprise.
An increase in any one branch of business
naturally aids 10 the increase of others.
By increasing manufactures the number Of
operatives is increased, and a greater
demand Tor provisions, clothing, mechani-
ca arts, &c, and the whole round of in,
vestment and labor enlarged, and the
general prosperity increased.
If all the intermediate purchases ere 10
be made for specie only paid in hand, an
amour, equal to about four times the value
Of the articles in he hands Of the consu.
me,s would be required. This is an I'M
natural state of Things, and must be pro-
ducive of loss equal to the interest on
the whole amount, beyond the actual va lue
Of the products Of industry. Money is but
the representative of value, the measure Of
The value of their products, and any in.
crease beyond tends to decrease the actual
value of these products.
Wealth may aptly enough be said to
consist in the ability TO purchase the pro-
ducts of industry. In this point of view
credit is wealth, and healthy credit should
be the care Of government, one Of its chief
objects as a means of producing general
prosperity; but this credit to be sound,
must be based upon property. Any foun>
dalion other than this brings into action a
fictitious credit, and the consequence is
overtradng, and the end poverty and
bankruptcy. The whole renge of credits
that are made upon the basis of mems
bodies, is injurious, inju furious TO the creditor
by ills losses and the false system of bust.
ness, injurious to the debtor by its expenses,
loss of time, bad habits, and destruction Of
manly independence, Injurious to the public
by lowering the tone of feeling, creating q
distinction OF classes, and diminishing the
effective power of the nation. A. B.
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