New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1848-02-05
w A X T. KIP T. Y : f. s.
By ALBEET GALLATTN.


debatable, doubtful and complex propositions,
some Of which it may be impossible, most Of which
it would be extremely difficult, TO discuss in
popular and generally Ineligible manner. Bat
there are some, which every member Of the com
munity may bring home to himself and clearly
derstand. Among these, may be counted the &C.
QUESTION and application Of Capital.
Every man, who enjoys certain income, knows
that be will grow poorer if be spends more, and
richer if he spends Less than the amount Of that
annual income. Ia the first case, he loses part Of
his capital in the other be acquires new capital.
Every man, who earns his living by bis industry
and labor, whatever this may be, knows perfectly
well that if he spends annually less than he earns,
the difference is an acquisition Of capital The
iourneyman, who in the course Of the year is able
to put forty dollars in Savings Bank understands
this as well as the most profound political econo-
mist.
In every instance capital is produced by labor,
and is equal to the excess Of that which is pro.
duced over and above the amount which is con
consumed. 1t is obvious that, since this is true Of
every individual, it is equally true Of the aggre-
gate OF individuas who compose the nation. The
acquisition OF capital. increase Of wealth of the
United States, is, in any one year, equal to the
excess Of the value Of the productive labor of the
people over and above the value Of that which
they have consumed during that year The whole
capital OF the United States has been produced by
the accumulated aggregate of that annual excess
of value produced, over value consumed.
However great this may be, it has generally been
inadequate to the demand In order that land may
be productive, labor must DO applied to it. Ia the
forest land, which constitutes probably nineteen
twentieths Of that which has as yet been settled,
it is in the first place necessary to clear the land OF
trees ard to incloseit The average price of this
amounts to - IS per acre 1t is clear that this
first outlay. the cost Of the humblest dwelling and
of absolutely necessary agricultural buildings as
well as that Of horses aud cattle, require pre-.
viousy existing capital 1t must moreover be re.
collected that the ordinary products Of agriculture
are not realized till after the crop. The laborer,
who has no capital whatever, must be supported.
aud his wages advanced to him by bis employer.
The population OF the United States has heretofore
increased at the rate OF about thirty three per cent
In ten years and there has been therefore pro.
portionate, and annually increasing, demand for
capital for agricultural purposes alone.
British Coonists, the lands in England were in.
closed fitted for cultivation stocked with horses
and cattle and the country covered with every
species of necessary buildings, including dwelling
houses America, in every such respect, was a
blank The first Cooniss brought with them but
very small amount Of capital, in proportion
10 their numbers. All that large amount OF fixed
and personal capital of which England was pos
sessed the product of the surplus labor or capital
accumulated during centuries, the American Colo
niss bad to create by their own industry and labor
single item may be adverted to. The number
of dwelling houses has necessarily been increased
in proportion to the increase Of population. In the
CITY of New York, for instance where the popula-
ton has been increased tenfold in fifty years the
number Of houses, which were built more than fifty
wears ago is extremely small and much less In
value than that Of houses built since that date,
which have been subsequently pulled down or de-
stroyed. The whole cost Of the dwelling houses
now existing in New York, which, after deducting
the nominal value Of the lots, may be estimated at
about one hundred millions Of dollars has been de
frsyed by the capital acquired during the last fifty
years The same process has taken place not only
in every town and village but throughout the whole
country. As whole, the general result has been
much less in proportion than in New York, since,
during that period the population Of the United
States at large has only been quadrupled Ii seems
probable, that the whole amount OF capital, alb
sorbed In the United States in that way, during
that period OF hity years uoes not all much SNORT
of fifteen hundred millions Of dollars.
The whole Of that capital, whatever its amount
NAV be- has not been yet actually expended, since
the houses do exist; but it has been applied 10
unproductive object Ii 10 clear that no man, who
lives in his own house, derives any revenue from
IT, Ii is portion Of that which he spends for bis
own comfort and which, independent OF wear and
tear is equal to the interes, Of the capital laid out
in building the house. II man let's his house, In
stead Of enjoying ii for his own use. he receives
rent equivalent to that interest But the person
who occupies the house, or part OF IT, and who pays
that rent does not derive the means OF paying 1t
from the house itself but from mis- own income or
labor. Thus in every instance, though forming an
important and necessary portion OF the liked capi
tai OF the nation dwelling houses are unproductiye
and portion OF the consumption and not OF the IN
come Of the nation.
Taking all these facts into consideration, II will
be easily understood why the acquisition Of circu
latng capital has been slow in the United States
and why they were obliged TO depend 80 long on
the aid afforded by foreign capital At the time
when Independence was declared, and for more
than thitty years after, America was always IN
debt TO Great Britain. Even now, the amount OF
circulating capital is comparatively small, and in
adequate 10 supply the ordinary demand for IT, In
almost every instance the funds necessary 10 carry
into effect extensive plans Of improvement whe.
ther rational or wild, have been borrowed abroad
and there is now a large debt due 10 foreigners
principally 10 Drtlsn SUBJECTS uuc not Dy AnuNluu
ais bat by several of the States. IL is doubtful
whether, pending the war with Mexico, the Gov
eminent Of the United States Notwithstanding their
unmpeached credit, could obtain any considerable
loan at par for six per cent stock Hence Il IL
that the destruction Of circulating capital, caused
by the war expenses, 10 already sensibly felt
A merchant, having iull confidence IN tho prooity
and skill of q man who has no property. sells him
on credit merchandise worth tive thousand dollars
The goods are delivered and on the same day are
burnt or otherwise destroyed, by some unforeseen
accident. In this case there Is no capital left
which represents the debt. There remains only
promise to pay, from a man who has no property
whatever. In order to discharge the debt be must
by his subsequent labor and frugahty, acquire
new capital
TIE same result attends war expenses. and for
the same reason the capital thus expended has
been destroyed.
The public debt of Great Britain may amour. to
sbou, eight hundred millions sterling and there
Is no existing capital which represents that debt
The creditors hold only promise to pay, the inter
e., of which they receive regularly This Paymsn,
Of interest, and general confidence IN ,ne sood
80 =. n give current value 20 the public