Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-07-26
BENEFICIAL EFFECT TO AGRTCUL-
TURISTS FROM A LOAN OFFICE


To the Editor Of the Union and American:
The productions of the earth being es-
sental to the existence of man, renders the
possession of land the most valuable species
of property; that it is esteemed the best
security for any credit given. The land of
this State may be considered our great
staple, and The culture of it of our principle
manufacture. In this point Of view they
may Justly be termed the best standard for
determining what amount of a circulating
medium the eXigencies of the State may de-
mand and its abilities TO support; for the
same reason they are the fund on which
that species of credit ought to be establish
ed, which applies in a manner peculiarly
beneficial to the interests of the State at
large and suitable to her circumstances.
As the riches of a country do not depend
on the quantity of money it possesses, but
on the extent and productiveness of its
lands, the number and industry of its in
habitants, and the plenty and intrinsic val
ne of its natural produce, the abundance or
scarcity of these, denOminate it really rich
or poor; and as the alienation and inter
changing of these real riches Of country
constitute its trade, the utility and indeed
necessity Of employing some substance
which may represent these riches as the
medium of transfer, demonstrate likewise
the necessity of propcrtioning that medium
TO the degree of alienation, according to the
great commercial scale of price and value.
1t will be readily understood that here
allude to that credit which is furnished by
State 10 the cultivators of lands, to enable
them, by anticipating the products of sew
eral years labor, to augment industry and
multiply the means of carrying it on, as to
accelerate improvements, and thereby en-
rich both individuals and the State, gener-
orally. Such credit is that created by
means of a State loan Office. This is an
institution so admirably adapted to the cir
cumstances OF this country, so well calcula-
| ted to relieve its necessities, .ounded on
such sound principles of national policy, and
| the prosperous effects which would so speed
| ily follow, it is, indeed, much to be wonder
| ed at how our people remain so inattentiTe
| TO this most important interest of our coun-
| try. The medium furnished by means Of
| this institution, is founded on the basis of
| credit; and it is expressly calculated to pro-
mote the extension of agriculture, that great
staple manufacture of this country, which
of course forms the greatest part Of its com
merce, at least that branch which tends
most to its interest-it is the best medium
we can employ to advance the material vel
| fare. 1t has always appeared to me little
surprising that mankind should have in gen.
eral entertained such just ideas with regard
to the means of making manufactures -four
| ish, and such defective notions concerning
| improvements in agriculture. For there
| can be 10 man so ignorant as not TO know
at once that the only possible way to make
manufacture thrive, is to procure ready
vent for the goods, as, without this, every
other announcement, however liberal, must
be Intellectual. Aud is it not sufficiently OBJ
| vious that agriculture, although often dis
| .inguished by another name, is to every in
| tent and purpose manufacture in as strict
a sense Of the word as the forming Of any
mechanical implement, and differs not in
| any respect from other manufactures as to
the means of making it flourish?
Let us coin our lands, and thereby OBJ
| tain from these most valuable of all mines,
q sufficient circulating medium of COM
merce. For this purpose l advocate the
| establishing of loan offices throughout the
| State. 1t is The only species ofmOney par
| taking of the nature OF credit that is not
liable to abuse; for being established on
that kind denomnated priodte credit, it can
not exceed, in quantity or nominal value,
| the actual but real worth of the security ii
! represents. The demand for money must
ever be proportionate 80 its uses; and thus
the necessary quantity my be easily &C
| commodated to the demand. Nor can there
be any doubt of this being proper stand
ard of regulation with respect to loan
office money; because the uses originating
from and being applicable to funds of the
| most valuable and substantial nature.
namley lands, the borrower would not be
willing to pay interest for greater sum
than he could reasonable suppose might be
employed TO his advantage.
The value of lanus is usually computed
at The purchase of a certain term of years;
that is, being themselves fund, the profits
accruing from its employment within g
given portion Of time, will determine the
value of stock producing those profits. 81
that, if the circulating medium OF oul
state be duly prop0rtioned to It's commerce
and if that medium of money will yield al
average profit of six per cent. the value o
lands can be estimated at about siXteeI
wears purchase; on the same principle, thu
interest of money is regulated by com
narison with the productive value of labo
and lands. This suggests the use of wei
regulated credit, which, by operating 8
stock, augments the profit on the actua
capital employed in conjunction with 1t.
Here we trace the beneficial effect OF tn
credit obtained by the sgriculturist from
, | loan office, The lands in an improves