, 1840-09-26

iii Tie COuutTys lie pTOpOSeu 10 remedy uls
J. want of money. 1t was afterwards adopted
with some variations, by the Duke of Or
leans, at that time Regent OF any extent.
was the real foundation of what is called the
f Mississippi scheme, the most %extravagant
project both of banking and stock jobbing
that perhaps the world over saw. The prin-
ciples upon which it was founded are explain.
ed by Mr.. Law himself, in a discourse con.
corning money and trade, which he publish.
ed in Scotland when he first proposed his
project. The splendid but visionary ideas
which are set forth in that and some other
works upon the same principles, still contin.
ue to make an impression upon many people.
and have perhaps, in part, contributed to
that excess of banking which has of late been
complained of both in Scotland and in other
Places The Mississippi scheme, it is well
known, ended in France in the bankruptcy
of the public treasury, the crush Of thousands
and thouands of private fortunes, and scenes
ofdesolation and distress equal TO those of an
invading army burning and laying vase all
before it.
At the time we were funding our national
debt, we heard much about "a public debt.
being a public blessing; that the stock re-
presenting II was a creation Of active CAPT.
tai for the aliment Of commerce, manufac-
lures, and agriculture. This paradox was
well adapted TO the minds of believers in
dreams, and the pulIs of that size entered bona
fde into it. But the art and mystery of
banks is a wonderful improvement on that
II is established on the principle. that .prirafe
debts are a public blessing.' That the evil
dences of those private debts, called bank
notes, become active capital. and aliment the
whole commerce. manufactures, and agricul-
,ure Of the United States. Here are a set
Of people, for instance, who have bestowed
on US the great blessing of running in our
debt about two hundred millions of dollars,
without our knowing who they are, where
they are. or what property they have to pay
this debt when called on; nay, who have
made us so sensible of the blessings Of letting
them run in our debt. that we have exempted
them by law from the repayment of these
debts beyond a given portion, generally es-
rimated at one thirdly And to fill up the
measure Of blessing, instead Of paying, they
receive an interest on what they owe from
those TO whom they owe; for all the notes.
or evidences of what they owe, which we
sre in circulation, have been lent to somebo-
dy on an interes, which is levied again on us
through the medium of commerce. And
they are so ready still TO deal ont their libe.
raliries to us. that they are now willing to let
themselves run in our debt ninety millions
more. on our paying them the same premium
of six or eight per cent. interest, and on the
same legal exemption from the repayment of
more than thirty millions of the debt, when
it shall I've called for. But let Us look at this
principle in its original form, and its copv
will then be equally understood. "A public
debt is public blessing That our debt was
juggled from lorty-ihree up to eighty millions.
and funded ut that amount, according TO this
opinion, was a great public blessing, because
the evidences of it could be vested in con.
merce. and thus converted into active capt.
tai, and then the more the debt was made to
he, the more active capital, was created
That is to saw, the creditors could now en-
ploy IN commerce the money due them from
the public, and make from il an annual profit
nf FIVE per cent, or four millions of dollars.
But observe, that the public were at the same
time paying on it an interest Of exactly the
same amount of four millions of dollars
Where then is the gain to either party, which
makes il n public blessing! There is no
CNIDUe w iHt Sldle D. uiIuES. uut Oi PERSONS
only. A has a debt due to him from the pub
lie. of which he holds their certificate as evi.
dence. and on which he is receiving an annu.
Al interest. He wishes. however. to have
The money itself. and to go into business with
it. B has an equal sum Of money in business.
but wishes now to retire, and live on the in
ierest. He therefore gives it TO A. in ex-
change for AS certificates Of public stock
Now, then. A has the money to employ in
business. which B so employed before. b
has the money on interest to live on, which
A lived on before: and the public pays the
interest to b, which they paid to A before
Here is no new creation Of capital. no addi-
,ional money employed, nor even a change in
the employment of a single dollar. The on
ly change is Of place between A and B, in
which we discover nc creation Of capital. nor
public blessing. Suppose, again, the public
to owe nothing. Then A not having lent
his money to the public, would be in posses
sion of it himself, and would 20 into bust
ness without the previous operation Of SELL
ing stock. Here again. the same quantity of
copital 10 apnlo,ad III, - H.