, 1876-01-19

hEQ, H!ilie tnt1>IS 10 on HtnnnkA!y hHA Ill HlH
customers nro equally fortunate IN their spec
nlatiors, l,o continues to cxpsusl ami grow
rich. hut there II hut ono end to Bpcouln-
tim. whether OIL n larga or small saaIe. In
accident, n r1lmos, comparatively gmall
failuro. or startling <1cfalcation, may dis
t,'sb tho market, mny increase tho rates OF
discount, or suspend discounts, and Then tho
man dealing or, credit In brought 10 stand,
md then lie goes down, carrying with him
regiments Of others tloing tic satno klinl ut
business. Thu capitalists who, whilo lilo
prosperous trade continued, glonned rich llnr.
vests in income, galhcr tho Dividends Of tho
baukrlpt e4tates, n1nl when "thc 1anic Is
oycr look u,l. for new customers Rinong tho
adventurous anil cntcrprisinE merchants who
tto business OH credit. This revolution Inns
hecotue to largo extent nh accomplished
fact in England, 10 much 70 that Tic periodi
cal recurrence Of commercial fixtures has
been Greatly shortened, anil aro 20 imminent
at all times TINT lanks, including tho
ueat NntionRl hank, nro often re-
tltccd to tho greatest straita to OVER
como tho Gtor1ns. This royotusiol,-lhis
expansion Of commerce by tho substitution
Of credit for capital, will, tho speculative
and ADVENTUROUS character given to tralo--lsas
m,da great progress III tho United Status.
Tho ranic Of 1873 aud other previous stsin.
gcncica wcro paralyzing 10 merchants in tho
extent to which business was carried on with
credit exceeding that Justified by capital. Tho
man doing business on Ills money is fnr
safer and moro prudent merchant, md less
| lihble 10 fail, thnn the man who tra1es on
credit, md who necessarily Inns to buy antl
sell moro merchandise, and at lcss profitable
rntcs, than hiu moro substantial neighfor. In
the ono case, fniluro means personal ruin ~
tho other, it means loss to creditors.
III the review OF tho mercantile failures Of
1876 there WIS, amid tho gloomy details, tito
encouragement TINT since 1879 there, Ind
been NIL Improvement In tho general charao-
ter Of trntlo, nnl it WIS due to tho Tact TINT
tho proportion of active and surplus capital
held by merchants to tho business done lad
largely increased and was increasing. Tho
speculative merchants carried down during
tho baI SEASONS preceding lad not resumed,
and those who Ind survived ana were ablo to
maintain themselves wero those who owned
tho capital invested in their trade.
Tho credit nsauia ia vesy nllnring; +
"r,shing business" meets tho idea OF pros
rer:ty III tho minds Of thousands. Whe1
moa pny thousand dollars per foot for land
they lnye never seen, md when banks 1eut
money OH the bonds or stock Of imngiuar.
anl insuhssantlal companies; when NOM,
itself Is worth in coin but fraction NOR
thnn The cost Of printing and stamping it
then tho spcculator and the denler in crcsli
considers the country at tho zenith Of pros
reyi.y, AMI that credit is iulinitnly bette
shnn capital. TAis idea is largely roprcscntc
in Congreas; it Inns Ind its advocatc
in tie Cabinet; it has its Bpccial friend
on NIL tho leading committees, an'
l.ea been publicly defended by candidate
for tho Presidency, It ID not slrnuge
therefore, that .bo ayeyags Congressmn
representing unsuitable town lots, or III
lN.i't'ing Of non-paying railroad, OF til
creation Of local debts, or the expenditure q
public money for public works. or any oshe
scheme for using other peoples money,
wild in advocating tho porpotuity aud oxpas
, sion OF tho credit system. lilo wnnta til
, Government to be magnificent md parcut
! ono. It il to him not u question Of u1xo
l but Of crcdit, print Tho money md sty.np /
aud hang tho man who won't take it. If u
| OF Congress- tue majority Of whW.o nle,
+ bcra are believers it, credit and itl uuliuit
| expansion, there docs not como n this st,
| ject any vicious legislation, tho country II
= haYo rcasou to bo thankEul.