Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-01-31

of circulating medium A vast portion o.
the capital of any commercial community is
nothing more than a confidence thai one man
places in another. The elements of credit
are the ability of an individual to perform his
contract, the faith OF others in his integrity,
and the stability of the laws. Any act of
government, therefore, which decreases the
ability of the individual to comply with bis
contract, which destroys the confidence be-
tween man and man, which weakens the
sense of responsibility, or impedes the collec-
ton of debts, does actually decrease the
wealth of the country. by throwing out of
employment all the talent, industry and ex-
perience which is supports by confidence
only, and by reducing the traffic of the coun-
try to the exchange of such commodities as
are valuable in themselves.
Local Bank credit. L will mention in the
second classifcation-It is so NEARLY allied 10
private credit that scarcely shade of diff
ference exists between them, with the excep-
ton, that this has the sanction of law as a
moneyed circulation. while that is the spon-
taneous result of necessity; they are alike
subject to the same infrmities, and the same
accidents; they both live on local confidence.
The breath Of suspicion alike taints, and panic
prostrates them. This is under the restraint of
a nominal legal responsibility, and accounta-
biliiy; that Of individual responsibility
between the two unsupported and uncon-
trolled by n national institution. it would be
difficult TO decide which is the most safe and
efficient agent in prosecuting the business of
a country. In proportion to the extent of
operations, ard of the nature of risks. the
ak credit presents much the largest defalca-
tions; on the other hand it originates more
extended facilities for the minor transaction
of IN n. \ tendency 10 Overtrading is how
yer common TO both, when a salutary check
is not interposed to prevent it. |, therefore,
would suggest a national bank circulation,
when cherished and fostered as it should be
by national policy, and when its credit is
coextensive with the home trade, is not den-
teal with coin a medium of exchange value,
but theory and experience show it TO be more
steady and useful than any other currency
II is economical in its creation: it can be
renewed and extended at pleasure; it is easy
Of transition, and can neither be exported
nor used in the arts; It possesses one Of the
most essential attributes Of currency. in not
being subjected TO the contingencies Of supply
and demand: and It is secure from all panicS
but those resulting from national fanaticism
and folly. In its relation to local banking in
situations and to private credit. a national
bank circulation is like the oak. around which
the ivy entwines, and with confidence puts
forth its fragile branches, to the upper air
National bank and indeed all circulation
founded on national credit is a most salutary
bond Of political union; with it no deep seat.
ed political disaster can exist without prOdu-
cling total arrangement of credit throughout
the whole country and this financial convul-
sion, that must precede revolution will so
startle and alarm the people, as to arrest
party and faction. We have now before rs the
influence of political obliquities, on the
business and creditof the country, and will
witness how unerringy the movers, of them
will be admOniShrd and put back. The proper
action OF government therefore should be to
maintain steady and Who'll, some admin
istration of the law: to protect equally the
various branches of industry; to preserve the
currency, and moneyed operations of the
country from sudden changes; TO sustain she
national faith inviolate, and to promote con-
fidcnce between man and man.