Specie was indeed
more difficult to be procured than the notes which the banks could
themselves create at pleasure; but still, being obtained from them as a
loan and returned as a deposit, which they were again at liberty to use,
it only passed round the circle with diminished speed. This operation
could not have been performed had the funds of the Government gone into
the Treasury to be regularly disbursed, and not into banks to be loaned
out for their own profit while they were permitted to substitute for it
a credit in account.
In expressing these sentiments I desire not to undervalue the benefits
of a salutary credit to any branch of enterprise. The credit bestowed
on probity and industry is the just reward of merit and an honorable
incentive to further acquisition. None oppose it who love their country
and understand its welfare. But when it is unduly encouraged; when it
is made to inflame the public mind with the temptations of sudden and
unsubstantial wealth; when it turns industry into paths that lead sooner
or later to disappointment and distress, it becomes liable to censure
and needs correction.
Pages:
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72