Iowa territorial gazette and advertiser. [volume] (Burlington, Iowa Territory [Iowa]) 1840-1846, 1843-03-18
EDITORS AND PROJECTORS.
CREDIT.
CREDIT.
This subiec, is we'll treated in the fol-
ing eytract from q late ..inoneY article:'


This subiec, is we'll treated in the FOL
lowing extract froma late money article
in the New York Herald:
''One oil the most extraordinary features
Of the financial revolution now in pro
gres<, il the fatality by which those who
are the most strenuous advocates for the
credit system, who e prosperity has h;th.
erto depended upon it, aud whose daily
cry is for is extension by "re:urn 81
confidence are, by their deeds, doing
their utmost to destroy the fabric which
they profess to rear. All credit depends
upon the hope and belief Of the creditor
that he shall ultimately obtain payment. II
the public give credit to banks, by taking
their notes, i, IS because they are confident
that those notes will be pasd.-ll an indi
vidual Sives another credit for properly,
il is because. he believes that he will paw
him; aud if he will not, that the laws
will compel him to restore u property.
IL capitalist lends money TO Il state. i, is
lie. ause he is confident thu, the legisla.
lure are possessed Of common sense and
common honesty, that represent truly
their constituents, ard are no, cont racing
larger debts than those constituents. are
able TO pay, and, consequently, that the
people are both able and wiling to pa,
While confidence is thus nnsh,ken, cred
TORS are willing to extend their loans to
almost any extent; and such was III. case
in l8s6--'37. and 1885, at the for
mer period i, first became evident tina, the
banks could not pay: the legislature al
lowed them to suspend, becnase oniy the
public were the creditors. THIS wa, the
tirs. serious blow to confidence, the cred
TORS of the banks found tina, they could
not get their pay. and The law would no,
protect them. The snphistry o, bankers
aud tinanciers. however, luiIed suspicion ;
and sta.cs and individuals were s'.!l trus.
.ed.-S ,on the revolution reached the in
dividual spectators. and they, having
suspended, as the. banks had .oae, wished
70 have their failure legaiz-d III the same
way, aud the bankrupt aw Of congress So,
aud the stay laws Ut the states Taught
creditors that their .rus, i'll lhe protection
oil the law was as llulscss AS tina, in te
means Ol their debtors. The next phase
WtbSS SsSS aSSoaulNtS ttS5Sui"Ns was lt0
Infection o, the tax payers liz many states.
Tue law had absO,ved banks and ,ndlvid.
uals from the paym Mt OF debts. aud thi,
torm,.d an admirable argument why tax
q, should be resisted; und slai,. bankrupt
cy has besA the result. Again the revo
fusion role lnrway !, and assumed u "ew
phase The bankruptcy q, the several
si.ies form. ii "a pt'a argument for rum.
ing th. leIara! Ep"ert,nssis for lhep re
iiei'; consequently. pro!ans haa!s seq 8
'ho land revenues, ani aitenjaA, u.eaS-
ures have brought tie federal gevefa.
meat 10 the verge o! bankruptcy; 10 per
lecl whic.', solnins bat the issue o SsoO.
OJO,OUO oi aat.o.la, stock is required
Each and all Of these msa ,ures have beer
called '.rc.ieI' measures; they have bee.
perfected by those men wAo clam,,r for 4
restoration oi conf sence: yet their ohjec
has been TO dclrual those vino give cred
liz! What Singular iniataat,un. tina
,ne. s..ouid ina 4ina ,ha, lhe way TO sc
credi. is openly to cheat aud DEFY thos.
whom they wlsh ~ trust lhem!'