The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1861-10-17
written ior a forthcoming number OF De Bow
Review.
BORROWING AT HOME AND BORROW.
ING ABROAD--THE COTTON LOAN.
l'Y GEORGE FITzHCGH.

II TO carry on the war we We're to borrow in
England TWO hundred and fifty millions Of
dollars, at the proposed rata ofinterest. prn-
cipal redeemabIe iii sixty years, we should in
that time pay To oar English creditors, in
way OF interest, more than one thousand
millions OF dollars besides paying back the
principal One thousand millions OF dollars
would thus be transferred from oar Conted-
eracy to Engiand We should ne> shat much
The poorer, and England that much the
WeaIthier, by the operation.
IL we borrow that amount from our own
citizens, we should save III sixty wears one
thousand millions, and the nation IN the ag-
xregate be not one cent the loser or the poorer
for the loan.
All interest is bnt tsxation. III The first
case ths tax collected would go to foreigners
and reduce to that amount our national
wealth; III the latter case, 1t Would he paid 10
our home creditors and would not diminish
our national wealth
When we borrow money abroad we but
acquire the privilege OF using our own credit
for money does not breed nor labor and
therefore has no value in the use, human
labor alone producing all values, and money
being the mere counters which keep the game
Of trade. If we would credit one another we
should not need MONEY. England tried this
experiment with signal Success during the
long period OF the suspension of her National
Bank.
The credit OF Government is always bet
ter al home than abroad, and the prudent and
sensible statesman Will never borrow one
cent abroad, because ne thereby makes his
country tributary 10 toreign gners, and dimin-
ishes national wealth.
But are in the full tide of successful ex-
pertinent on this subject. We have substi-
tuted bank notes and Treasury notes and
Treasury bonds for money, and trade gets
along very Well IL the absence OF & metallic
currency.
The people trust the Banks and the Gov
ernment, not because they expect their liza
biliues will ever be literally redeemed in no
Int
that the Banks and the Govern mcrit can com
mand the results or PRODUCES of human Ia
bor TO an amount equivalent 10 their inde bt-
edness. human labor alone possesses value
and i'm presses value its results Money is
the result of human labor, and represents
anI is exchanged for the amount of labor re-
QuireG to procure it from the mine and form
it into coin. This is its only real ral.e; its
interest is the taxing power which it pos
sesses, in common with other kinds of capital
Capital whether in lands, houses, money, or
aught else. commands Labor, (as the master
commands Ihe labor of the slaye.l when il is
hired rented, or loaned ou,, except when the
capital or part OF it is consumed in The use
for capital does not breed produce VaIues
To illustrate and exempiiiy If build
house with the proceeds of my own labor
and rent II out for len per cent. on the cost,
whilst the annual wear and tear and decay
are only four per cent. on my capital, is the
amount OF Ia Dor or its results, which l COM
mau6, on slf,ioiidts, without paying for it, or
returning AN equivalent In labor or labors
worth.
Again, il 1-amass ten thousand dollars by
my labor, and exchange the principal SO ae-
quired for the labor, or products Of the labor
of other people, give value for value; but
il retain the tea thousand dollars and live
on its interest, give no values in exchange
for the values on which live. command an
Mcally six hundred dollars worth of human
labor. / am STAKEHOLDER to the amount Of
my capital. own property in man, or in
mans labor, to the amount OF tel thonsand