Baton-Rouge gazette. [volume] (Baton-Rouge, La.) 1819-1856, 1841-05-29

a -NE
CREDIT SYSTEM ". PLANTERS.
Extract from an Grafton before The Agri-
cultural Society Of South Carolina, By
GEO. McDUFFIE.
We recommend, most warmly. the following
extract to, the attention Of our agricultural
readers. To us, it seems replete with all
important, and self-evident truths, truths that
apply as well in Louisiana as in South CARROLL
ma truths that no sophism can elfsctually dis
tort or dim, because they are those of every
day evidence, such as meet the eyes of all
such as, when disputed, can call up whole
communities to bear testimony of their sound
ness. For one, we are most heartily sick of
the "credit system; y its nefarious conse-
quences meet us SO frequently and boldly now
a-days-stare upon LIS with such glaring,
ghastly orbs of wretchedness and woe, that we
never write the words without a trembling
hand. 1t must be abolished it wD be abol-
ished-the nation, individually and collective
ly, win be COMPELLED to abolish it, and the
sound, unfaltering, sterling old plan of bust
ness-the "pAY AS YOU CO. system-will
be again called up from those dark and silent
abodes to which it was consigned by a spirit of
innovation, pride, and deception.
1t is the PAY AS YOU 60 system, that we
are to look to for a sound and healthy curren-
cy. Until the people are out of debt, they
never can have that. All the legislatures on
earth could not give it them, Banks may be
made but without capital, what are banks!
And where are they to get capital now? From
the people! They have not the capital to pay
their debts. From European Jews! The
b.ni:s have ruined our credit and character in
Europe, and the Rothchilds and Earrings
would not, to-day, lend us a picayune, unless
we gave them a bit in security. But who ever
heard Of bad currency and %ruinous exchanges,
while people kept square with the world, and
lived on thsir own means, and within their own
means? We never read of such things peo-
pie always have good currencies until they
owe more than they can pay; and then any
currency must be bad, because its nominal
value cannot be inflated SO as to cover the
liabilities of those N.horhold it.
If we consult the experience of other
States, we shall find that all the advanta-
ges o .fertile soils and genial climate have
been blasted by the mistaken p Icy Of
which | am speaking; and # at whole CON-
munities which industry and prudence
would have caused to flourish almost be-
yond example, exhibit n general scene
of pecuniary embarrassment, bankruptcy
and ruin. The experience and obserya-
ton of every planter will sustain me in
the assertion, that we pay tor credit, in
the mode in whichit is usually obtained in
the purchase of property, from 10 to so
per cent. interest. Every one who is &C
cusiomed to attend administrators and
other pubic sales, must have been struck
by the extravagant prices men are tempted
to give BY a years credit ; and not less by
the fact that such men are perpetually in
yolved in pecuniary embarrassments, and
that the very efforts they thus imprudent-
ly make to get forward in the world faster
than their neighbors, keep them always in
the rear. In fact, II may be truly affirmed
as a general truth, that planters VIC are
largely in debt, are, to that extent, the
mere stewards of their creditors. Life is
with them an anxious and slavish struggle
in pursuit of an nbjectwhich always eludes
their grasp. But there is another form of
credit, fortunately not so prevalent in s.
Carolina as in other States, of which plant
ers are but too ready to avail themselves,
which is equally at war with sound econo-
my and sound currency. Iallade, of course,
to bank discounts. 1t has been so fashion,
able of late, to pronounce extravagant eu-
logies on what is miscalIed the credit sys-
tenn, that it will probably be deemed quite
heretical to say that credit, in any form, is
a public and private evil. 1t is, neyerthe-
less, my deliberate and well considered
opinion, that one of the greatest ~nulsances
that could afiict an agricultural ommu-
nifty would be the establishment of agri-
cultural banks, so located as to enable
every planter to obtain credit to the amount
of one third part of the value of his estate.
The fatal experience of other States has
~conelusively proved that such establish