The Lancaster ledger. [volume] (Lancaster, S.C.) 1852-1905, 1862-02-26
COMMUNICATIONS.
lroa IHE LANCASTER LEDGER. |
No. VIII.

Among the popular delusions. atten'
dant on the paper money system, is the
prevalent belief tha: Bank Stock, Govern.
.uent Scrip, bonds aud promissory notes,
which pay dividends, or bear interest, are
substantial productive wealth. Indeed,
they are termed invested capital, rs il
they were the chief, and most sure spe.
ces Of property. This error has estab
lished itself in legislation ; and now ap.
pears, conspicuous!y, in the Confederate
tax law, for the support of the war-as
ingenious, AMI ilIusory, as the aLor,ve
planters loan, 10y cotton subscription.
The fact is, that these securities, us
they are termed, are in themselves, alto.
ge'ber unproduc.ive. They add nothing
to the general wealth nor even to the
available means of the people Of S,a,es
except so far AS they are held by foreign.
ers. To the exten. that persons abroad
lend their moncr,and receive,in exchange,
these securities, there is, Of course, so
much more means Of purchasing proper
ty. o. employing labour, in community;
SO long ~ they retain these evidences Of
debt, and allow the money. for which
they were exchanged, tu remain. Wheth
er this be benefit or not, is however We.
ry problematcal 70, it may only in
crease the evils Of the banking system
generally occasion embarrassment, from
niscalcula,ions on the deceptive appear,
an"e Of wealth aud ultimately endan.
ger the independence Of n people as in
the instances Of the Mexican Republic,
and the almost provincial condition of the
Southern States, before their presen,
struggle agains, political anl commercial
thraidom.
So IA. as these securities ara in the
hands Of domestic holders, the fallacy is
transparent for the dividends and inter
est do not issue from them, but are pro.
duced by the borrowers wLo are there.
by enabled to control property and Ia
bour; which would, probably, have been
more productive, in the hands Of more
careful owners. As to ,hat portion de.
nominated public Scrip. the dividends
proceed from the taxes on property, and
actual wealth. As to bank stocks, what
is called bank capital. is sub divided a
mong the stockholders, and was accumu.
lated bv their individual contributions OF
the money, for which property was cx
changed, or which was obtained as the
frui: Of labour. When thi. m,n.y Le.
comes bank stock, it can only produce
dividends, 10y being loaned to borrowers,
who pay an interest out of the produc
tons of the property, or labour, they
purchase with their loans. This circuit.
ons proceeding evidently adds nothing,
substantially, to the wealth, which thus
runs around a circle. before it starts on
its course of productive employmenc-
And so a.so with bonds and notes, the
creditor and debtor really divide the pro.
duction Of the loan, aud the share of the
former is termed interest yet. IN reality,
the only actual profit, or production, is,
sues from the substantial property or Ia.
bour which the borrower controlled, The
real owner leaves the management 10 the
borrower, who becomes an ungoverned
stewart OF the property anil Iabour, which
Providence has allotted to another. II
the creditor participated in the enterprise
Of the borrower, and shared the risks Of
the loan, there would be community Of
interest. Capital and lsbour might saler
ly and pruden,ly unite in common EN-
ployment. Expe ence and hope would
march hand in hand, without jealousy
and hostility: but, under the present sys,
TEN, they are separated by selfshness
and mutual dis,rust prevents confidence,
and too often destroys both.
Here is the true and radical evil. Men
endesrour 10 relieve themselves Of the
stewardship Of the means. with which
they are endowed and these are the
creditors: and men strive to possess
,aemseir yes Of means, OF which tue stew
arishtp has not heen given TO them and
these are the debtors. AS the love Of
gain is stronger than the love of ease,
the latter class are more urgent, and al
low the former to impose onerous condi
tons upon them. The creditor requires
what is termed security; for while he
parts with his stewardship, lie shrioks
from the risks Of its neglect, and seeks
~. IL.