The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-05
NO.S9.

would show that the wealth and prosperity Of the
country have as broad foundation as It's popular
situations Undoubtedly there pecuiares in that
system, resulting from the OF our political insti-
tutons, from our elementary laws and from the general
character Of the people These pecularites most IN
questlonaby give credit, those means and those
arrangements, by whatever names call them, which
are calculated TO keep the whole by far The greater
part, Of the capital Of the country state Of constant
activity degree Of importance far exceeding what is
experienced elsewhere
In the old countries Of Europe there is clear and
well defined line, between capital and labor line
which strikes through society With horizontal sweep
leaving on one side wealth. in Masses holdenby few
hands and those having little participation in the labor.
Gus pursuits OF life the other the hrongDg multi
tudes OF labor with here and there, only an instance Of
such accumulation OF earnings TO deserve the nme
oil capital. This distinction, indeed is not universal
and absolute any OF the commercial States of Europe
and II grows less and less definite commerce adyan-
ces the effect OF commerce and manufactures as all
history shows, being everywhere, to duse wealth. and
not TO aid lis accumulation IN few hands But still the
line Is greatly more broad, marked mud visible In Ea-
ropean nations than III the United States In those
nations The gains Of capital and wages or the earnings
OF labor, only distinct in idea elements OF The
science OF political economy, but, 10 great degree
also, distinct IN fact and their respective CLAIMS and
merits, and modes Of relative adjustment become sub.
ecs OF discussion and OF public regulation Now, sir,
every body may that that is Of things which
does rot exist with US, We have no such visible and
broad distinction between capital and labor and much
OF the general happiness Of all classes results from this
With US, labor every day augmen,ng It's means BY
It's own industry; not in all cases indeed, but in very
many. Its savings Of yesterday become its capital,
| therefore, OF to-day. On the other hand vastly the
greater portion Of the property Of the country exists in
such small quantities that It's holders cannot dispense
altogether with their personal industry or it. in
some instances capital be accumulated till rises to
what may be called auence, is usually dlsnteprated
and broken into particles again. in one or two genera
lions The abolition Of the rights OF prlmogenitnre
the descent OF property OF every sort to females well
as males the cheap and easy means by which properly
is transferred and conveyed the high price OF labor
the low price OF land the genius Of political instr
tutons IN hne every thing, belonging to counter
acts large accumulation. This is our actual system
Our politics, constitutions, elementary laws, our
habits, all centre in this point, tend to this result
From where now stand, 10 the extremity of the north
cast vastly the greatest part OF the property of the
try is III the hands and ownership of those whose per-
sonal industry Is employed IN some form of productive
! labor General competence general education, enter
prise, activity and industry such before per-
yaded any society, the characteristics which dsn-
gulsh the people who ve and move, aud act in this
state Of things, such as have described it
Now, sir, If this view be true, as think is all
perceive that the United States, capital cannot saw
to labor and industry " Stand ye yonder, while come
up hiher," bot labor and industry lay hold capital
break 1t into parcels, 1t, dltfase it widely, and
stead Of leaving II to repose its nertness compel
II to act at once as their own stimulus and their
| instrument.
But sir, this is not all There is another view still
more Immediately affecting the operation and use of
| credit. Ia every wealthy community, however equally
property may be divided, there will always be some
property holders who live its income. If this pro-
psrty be land, they live rent; be money they
live lis interest The amount Of real estate held in
this country on lease, is comparatively very small
cep in the cities But there individuals and fami-
hes trustees, and guardians, and various literary and
charitable institutions, who have to invest
funds for the purpose Of annual moneyed income -
Where do they invest where can they investl The
answer these questions shows at mighty DIFF
ference between the state Of things here and that
England Here, these Investments, TO produce mo-
neyed income, made III banks insurance compa-
mes canal and railroad corporations, and other similar
institutions. Placed thus Immediately in active hands,
this capital it is evident, becomes at the basis of
business 1t gives occupation, pays labor excltes enter
prise, and performs, short, all the functions OF en-
ployed money But, in England, investments for such
purposes usually take another direction There is, in
| England, amount Of public stocks, eight or
nine hundred millions sterling of public debt actually
exists constituting to the amount OF It's annual interest
a charge the active capital and industry of the
try IN the hands OF individuals portions of this debt
are capital that is, they produce income TO the pro-
pretors, and income without labor; while a national
point of view, it is mere debt What obtained for
IT, or that account of which it contracted, has
been spent in the long and arduous wars, which the
( the Third TO our own days There are thousands of
individuals therefore, whose fixed income arises, not
from the active use OF property either IN their own
hands, the hands OF others, but from the interest
that part of this national charge to which they ent
tied If, therefore, the term capital not In the
sense of political economy exactly, but implying what
returns income individuals, fluid almost
ncalculable mass crcumstanced not to be the
/ basis OF active operations.
TO illustrate this idea further, sir let suppose that
by some occurrence, (such is certainly never to be
eNpeced,) this debt should be paid off suppose its
! holders were to receive tomorrow their full amounts
what would they do with them Why, sir If they were
obliged TO loan the onequaIter part INTO the hands OF
the industrious classes for the purposes of employment
in active business; and if this operation could be ac
compsnled by the intelligence and industry among
the people which prevail with us, the result would do
toward raising the character Of the aborng classes
than all reforms in Parliament, and other general poIl
cal operations II would be if this debt had never
been contracted if the money had never been spent
and remained part OF the active capital OF the
try employed in the business Of life. Bot this Debt,
has created enormous amount OF private proper
ty. upon the income of which It's owners live, which
does require their own labor that of others
We have such Debt have such mode OF in
vestmcnt and this circumstance gives quite different
. aspect and different reality to our condition.
Now Mr. President what understood by the credit
system is, that which thus connects labor and capital,
nv giving labor the Of capital In other words,
intelligence, good character, aud good morals bestow
those who have capital, power, a trust, conf
deuce which enables them to obtain il, and 10 employ
1t uscfuy for themselves and others, These active
Of business build their hopes of their atcn
/ tyencss their economy, and their integrity. A wider
theatre for useful activity is under their feet and around
them, than spread before the eyes Of the
young and enterprsng generations OF men, any other
spo, enlightened by the Before them is the
Every thing that direction invites them TO efforts OF
enterprise and industry IN the pursuits OF commerce and
the fisheries Around them. on all hands are thriving