Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1839-08-27

WAYS recollect that they have no rignt 70
demand credence for their opinions, except
so far as they may be sustained by sound
reasons. These remarks appear to be
altogether pertinent in discussion on the
utility of banking institutions. Inc very
fact that banks have been, Tor very loDg
time, in use among the most enlightened
and commercial nations OF the earth'
should make any one pause before ne ae-
cides against their utility. Yet how oiten
do we hear ACCOMPLISHMENTS using
bold and dognatic language where en-
Iightened wisdom would speak with DIM
dence!
Let us now inquire what are the advan-
tages that result to society from the esta0-
lishment of these Institutions. Ofthe utll-
ity of Banks, as institutions OF deposlte'
little need be said. Every one at all ac-
quainted with their practical operations
especially in large cities, IS aware OF the
manner in which they save the labor OF
TRANSPORTATION, Of counting and OF vigil
ance. and thus facilitate the payments of
money, not only in the same, but IN differ
ent places. 1t is also clear that they dlmln-
ish the amount of the circulating medium
necessary TO carry on the exchanges OF
the community. But Banks in this coun-
try, perform the functions not only OF re-
ceiving and paying out money on deposit,
and keeping all the accounts necessary to
these transactions; but they also loan mo-
ney at interest and issue their own prom
issory notes payable on demand in specie.
What are the advantages which result to
the community from banks, as establish
ments for the loan Of money,is the question
which next presents itself. Now, let ii be
remembered, that all production is the
result Of the application Of capital to indus
try. But we frequently see that the capt.
tai is the property of one man, and the
industry of another. One man has capital,
but does not wish to engage in any busl-
ness in which that capital can be actively
employed. Another has industry and skill
but no capital, for the want of which. he is
unable to make his industry and skill
available. 1t is obvious to every one that
it will be a great advantage TO both par
ties, if the capitalist can lend his capital TO
the laborer, and receive fair compensation
for the use of it; while the laborer, by uni
ting capital with his industry, will be able,
after paying the capitalist the interest on
his money, to retain handsome remuner-
alton for his labor. 1t is equally true
that not only the parties themselves, but
the whole community will be benefited by
SUCH an arrangement; for inasmuch as the
wealth of tic community Is made up o.
the wealth of Individuals, it is clear thai
the community is enriched 5g every add.
ton to the wealth of its members. y
course, it is not intended that the commu'
nitv is enriched by the mere transfer Of
wealth from one individual to another, but
by the creation of wealth effected by the
capital or industry of any member OF soel.
ETY.. On this subject illustrations innu'
merable might be adduced, but it is hoped
that every one will at once acknowledge
that the interest of every community is
best advanced by bringing the whole o.
its industry and capital INTO active en-
ployment. No proposition less needs de.
monstration.
are The best means of bringing all the cap
ital Of the country into employment, or in
other words, of uniting it with industry, we
snail have accomplished all that is neces-
sary for our present purpose. That they
are institutions of this character, may ap-
pear from various considerations. They
collect together capital which would 9TH
erwise remain scattered and use 'ess. A
large amount of capital in every commu-
nifty, is always in the possession of females,
minors and aged persons who can neither
labor with it themselves, nor loan it with
prudence and safety. From a want OF
discretion and of a practical acquaintance
with the business of active life, as well as
| from some other causes, these persons are
incapable of experimenting the loan of
their own capital, and to them banks be-
come useful agents and safe repositories.
There. are also many other pei sons, who,
from a variety of reasons, find bank stock
profitable investment for their capital, to
whom it would otherwise be almost or
altogether unproductive. Capital being
thus concentrated, every person who wish
es to borrow, knows where TO apply for
loan; and there beng always a altitude
of borrowers, II is generally kept in active
operation. Whereas, if he, who has only
few hundred dollars to loan, is obliged
to wait until some one calls FOR it, it win
probably happen that his money will be
lying useless a great part of the time.
Neither can he generally be so well ac-
quainted with the circumstances Of bor-
rowers as a body of bank directors, whose
business it is to loan money. Again, if
the borrower has to search out the lender,
and TO satisfy him with regard to his sol
vency, there will be a great and useless
consumption Of time and labor. For these
and similar reasons, banks have been es-
tablished in all the most commercial coun.
tries of the earth. They, in fact, are labor
saving machines. They occupy an inter-
mediate place between the lenders and
borrowers of money and bring them to-
gether on terms most advantageous TO
both parties. By thus collecting together
and rendering available all the capital of
country, and then loaning it out TO all who
can give satisfactory assurance of its be.
ing prudently used, banks are the means
of greatly quickening the industry of
people. They create no capital, it is true,
but they render the existing capital much
more productive.
NECKAR.
New York, AUGUST IL.
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