The morning star and Catholic messenger. [volume] (New Orleans [La.]) 1868-1881, 1875-10-31
IL. o. Price currant.l

Is. o. Price currantl
Capital may be defined to be the surplus
of what one possesses over what lie owes.
An eminent authority in political economy
defines 1t as "that portion Of mans reve-
nue. which remains ae surplus or saving
after all his expenditures are made" or, "a
surplus which may be laid out to produce
further profit or additional revenue" But
the excess in revenue over expenditures
may represent only part Of ones capital,
constituting, perhaps, very small addition
to its volume, and on the other hand one
may hold large surplus to invest 10 pro-
ductive forms, bat be under such liabilities
that this surplus will much exceed his actual
capital. II one engages in business with
an actual capital of 100000, and at the
end of o given period has incurred liabili-
ties to the extent of $500, 600, while his as
sets are of equal value and no more, it 10
manifest that, although he may have q
large sum available for trade or prod uc-
ton, his actual capital has been lost,
and be would not have dollar left after
the payment of his debts. If, on the
contrary, his assets exceed his liabilities
$lO0, 900, then he 10 just where he started /;
and il the excess be greater, then that ex-
cess Representa- the actual addition made to
his original capital. Capital. however,
may be diminished or increased otherwise
than by regular trade. merchant may
invest o certain SUN in q store for the pros
ecution Of bis business. In the course of
time this property may rise in value 50 per
cent, or It may fall to the same extent. In
the one case his assets are proportionably
augmented, or in the other diminished.
The circulating medium 10 not capital.
In the United States 1t consists, at present,
of ifredsemable government notes and
bank notes redeemable in government
notes. Its purpose 10 to facilitate the ex
changes Of commodities by furnishing q
IA =.
patent that prices are affected by the ex
tent Of this medium. II 1t be redundant
over what is necessary under given con-
dition Of affairs for the conversion of COM
mOdities, prices will rise /; lift be deficient,
they will proportionably fall. OF course
this 10 only general law, which is affected
in q greater or less degree by existing cir
cumstances.
We make these general propositions as
Introductory to that for which we have
steadfasily argued, that, we, in the South,
want more capital, but not more circulating
medium, Sunless it represents additional
capital, and is required by an enlarged
we had more circulating medium in New
Orleans than could be used in legitimate
trade; now we have, perhaps, less than is
required. Then, money was drug ; now
the demand exceeds the supply. The re-
salt has been caused by the accelerated
ment of the crops, aud stimulated thereby.
We want more capital now, but hardly
more than when money was easy, for it is
wanted for permanent employment in pro-
ductive industry,-in agriculture, com
merce and manufact1ree,-in opening new
plantations, building steamships and sail
ing vessels to promote trade with distant
markets, and establishing manufactures
for the conversion Of our home products
into commodities for domestic and foreign
consumption.
1t 10 capital then, that We want, not
merely an enlarged circulating medium,
and the error of the ipflAtionists is in sup
posing that increasing paper money,
auRments capital.
The capital of the people of the United
States was enormously diminished by the
war. Daring hostilities, while production
was diminished or suspended, there was an
immense waste and destruction of wealth
by the contendiDg armies. The actual
capital of the country was thereby enor-
mously diminished. After the war, pro-
duction was resumed, but on a reduced
scale in consequence of deficient capital.
But even with this restriction thu surplus
might ere now have been sufficient to sup
ply previous losses had it not been for an
excessive portion of the annualincome being
locked up in dead weight, such as railroads
beyond the immediate wants of the people,
and culpably lavish expenditures for Pala
tial private residences, costly furniture and
other luxuries.
fered the paraly sis of trade and the general
traction of the currency.