The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-06-10

baseless assumption fsuperorty should be requisite in
procuring the management of other peoples property
One oil the greatest delusons that has veraken the
people Of this country of late years has been that the
essui operation of banks promotes the application of
capital the development the resources Of the country
The creation of banks and the increase of their capitals
thought to promote credit On the contrary it destroys
credit The proper OF capital for those no possess
It. to loan 10 those who it, to put labor IN
operation thereby to increase the capital and after rein
bursting the lender with fair 20 leave a surplus for
the operator Capital wealth be increased or pro-
duced only by actual labor. Wealth must be drawn from
the ocean, raised from the earth hewn out of the forest
dug out of the mines by other process Of actual
industry All these works of time and the capital
which is employed in them continue invested for
long period at least for year. When by long period
otsucc essfu industry man has accumulated such por-
ton of capital will allow him from labor he
then seeks to invest that capital in manner that will yield
him an income sufficient for his support Where there
banks he about him for customer and trusts
his money to that person whom he knows be frugal
and Industrious Those qualities always procure credt
for their possessor and the capital goes accumuatng
Where the largest proportion of the inhabitants of ma
ton of such habs-and that the case with our
forefathershea aggregate national wealth constantly and
rapidly increased.
In an evil hour however banks created The re-
to him who would add to it by continuing the industry
which originally produced it, seduced into investing it in
bank stock. The money although it may continue TO
yield the individual profit becomes vaueess to the ma
ton 1t can no longer be employed in industrial pursuits
because the nature of banking institutions will per-
NIT Of their loanng money for along period ome Three
to four menths is the extent to which they safely
loans In short time the laborer raise CROP
go voyage perform any other occupation and turn
the money in to repay the bank The bank there
fore longer lends to the producer of wealth. but the
dealers in wealth already produced, and which, by
changing hands, receive additional value. In the
exact proportion, there ore in which money is invested
in banks the productive energies Of the country
cramped and if banking pushed excess the national
wealth must come to n stand STILL and then rapidly dim
nsh because the people will have become consumers in
stead OF producers For instance suppose individual
by long of ugality and industry has amassed
say $4,000 while he is amassing that money his con-
duct and appearance will the casual observer in
believing him to be poor If he then turns round
ceases to work. and commences great display while his
money lasts the casual observ him down as
very rich This was the case with the United
spang its capital and the of the prostraton then
producedis in the hardness ofrecovery The follow
ins table will illustrate the fact that the accumulation of
bank capital tends to mpoversh the country -
pp r. u