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That a diminished circulation, in other words a scarcity of money, and consequent low prices, is at this time paralyzing agriculture, trade, and manufacture, is universally felt and acknowledged; but there are various opinions as to the cause or causes of the evil, and the nature of its remedy. It will throw light upon these subjects of inquiry, if we trace the progress of circulation of money throughout its course.

The daily subsistence of the people is its primum mobile. Its first motion is in the payments for the purchase of the food of each day’s consumption qoysequently the fruits of the earth, or agricultural produce, is that which forces it into action, and gives rise to its diurnal motion. All other circulation is occasional or voluntary. It is the necessity of food for subsistence, that is the propelling force of labor of all kinds, which is the means, or instrument, or price of obtaining it.

It is the annual renovation of that produce, which gives rise to the idea of annual income. What is gathered in barvest, or during the season of vegetation, is laid up in store, as the fund for subsistence, till the recurrence of the same season of the succeeding year; and consequently the means of purchase must have a corresponding renovation. Labor, or the sweat of man's brow, is the source and price of Nature's reproduction, and the means of its distribution and enjoyment by man..!! DIY smithe price of the necessaries of life is ever varying, according to the accidental fluctuations of the demand and supply of each market. Occasioval greater fluctuations are produced by seasons of plenty or scarcity. These are natural, the former accidental varia. tionsovittorado, sols - Agricultural produce thus becoming the moving power, or the Terminus a quo the annual circulation of money begins; so each year's total consiimption of it may be in a great degree considered as the Terminus ad quem it ceases and the bringing into the market, of the succeeding year's crop, its recommencement.

From this point, therefore, which may be contemplated as the fountain head, it may be worth while to pursue the course of the stream, through its various intermediate channels and passages, till åt reverts to the same point. av The money passes from the pocket of the daily consumer, through the hands of tbe miller, the baker, the butcher, and the different dealers, in corn, bay, potatoes, and other vegetable and animal produce, (including, wool,) into the hands of the farmer ; out of his hands it falls into various streams and channels.

de Daily wages, and all other current expences of husbandry. d. Taxes, rates, tythes, rents, repairs. 3. Improvements, including draining, building, artificial manures,

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experiments, &c.; all giving rise to extra labor, and having for their object increase of production. . !» 7$! rsrsret

4. The subsistence of his family, and personal expences, inclu- '. ding furniture, and all other necessaries, and (of his returns are sucha as to enable him) under this head are to be included all isochlust's uries in the style of living and veducation of this lebildren, &ci asbest considers himself entitled to enjoy.

.xlsts 5. Surplus or savings (if any). These he invests in government or other securitiesy or in the purchase of landed propertyrii mor!

Now it will be observed, that all the above heads or rivulets of expenditure, except the last, fall into or pass through the hands of it trade and manufacture. 116.0 10.75hos a global partit bar

1. The wages of labor. These go to the butcher and baket, a and all the tradės/which purchase the neeossaries of food and clothing (except the rent of the laborer's cottage, of which hereafter), and too much, in modern times, to the publican, brewer, and distiller

2 Other expences of husbandry --All go to trade--viz. to the smith eollar-makercarpenterji bricklayer; potter, ironmonger, wheelwright, mechanist of instruments and tools, farrier, borse si dealer;line-burner, i&çi Suc. 1848 94 to 1 1 10 RIVAS!!! It dT

8. Taxes. These go in payment of salaries, and all other Go vernment expences, andd of the army and many and all public ostablishments, and in the dividends, and interest of the public debt. i The whole of this expenditure passes thnough the hands into which it thus falls, into trade for subsistence, i necessaries, and luxuries, except such part as consists of savings, of which hereafter. And it is ofshe first necessity to a State, that the prices of food, &c., should be in proportion to the bill of taxess for taxes are the rent to Gost, vernmentąsfor the settling of laws, liberties; &c.justạ8- much ast' rent is the price of the right to occupy land, or wages ate to comes mand laborion 916 219qurq 199029 21102790 0 200 veeb 11A

41 Paor rates. These gorimmediately to the subsistence of the poorsand those who have the charge of them, and consequently pass into the hands of the trades, which are the channels of the necessaries of dife before obticedo il w 10102* 1907nd plan LIT

5. Highway and Church rates.-- These are expended io laborgi, and repairs, of buildingstbridges; &ei, pand consequently pass iwtó the samel Handse doruq adi ali 90 poinn92 110 124*** 26 eneol ni

6. Tythes.-7. Rent.**These, when they have reached the hands of the proprietors are the revenues for their support, and that of their families and establishments, and consequently pass in their expenditure, (except taxéseofvwbigh beforez) wbolly-into trades and professions for necessariee cand luxurier. So much of the money asc goes ia payment of wages and salaries reventually follows the same » destination, except savingsblofdwhich hereafter my!

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9. Repairs. 9. Improvements. This expenditure it will be seen, by its nature, passes wholly, mediately or immediately, through the hands of trade. Immagible only

0. Subsistence-of Family, &c.-_This branch of expenditure, whethet confined to 'necessaries or extended to luxuries, wholly passes through n trade and manufacture, mediately or immediately.

thb. Surplus or Savings Of these hereafter..."

From trade and manufacture So much of the money circulated asi will cover the s necessaries of subsistence comes round again thtough the hantts before described, into the hands of the farmer; and thus the circle is complete, or terminates where it began. It is thel Fons, principium et finis. www] ..

All the interior circulations of trade, (which may be compared to so many eddies or whirlpools) originate in and receive their motion or impulse from the great fountain head_these circulations are occasioned by the multiplication and transit of the artificial prodactions of labor, the wages whereof have the origin and termidation before described. 39

The dividends, or interest of the public debt, areemployed in the subsistence (including taxes) of the families and establishments of the proprietons, or in trade or agriculture, buildings, and luxuries of all kinds, except savings, which are invested in the purchase of stock or laud, or otheti securities. ;-*17 snud ??1345

The incomes of the professions are drawn from the possessors of landed and moneyed revenues, and those engaged in trade, manufacture, &c., in short from the whole community. “ These incomes, exeept savings andit taxes, repass through trade and manufacture, in the expences of living and luxuries, and so much as is expended in subsistence reverts to the farmer. n 11

All descriptions of persons, except paupers, are more or less capable of making savings out of their incomes or earnings, and some of all descriptions are found to do so in practice, the sums thus arrested become either dormant or active capital,

That only becomes dormant, which is deposited in a chest, and wholly unemployed. "

aty na The great bulk of savings is invested in the purchase of stock, or in loans, as interest on securities, or in the purchase of landed property, or in articles of elegance or luxury. 49:1171

Though the stock, land, or articles purchasedy or securities taken, are to the possessor so much sleeping capital, ultra the annual income arising therefrom, yet the money paid or invested in them continues asintactivityThe sellers or borrowers, become 80, because they wanted the money for other purposes, to make a profit of it, or to employ it in trade, building, or improvements ; and it rests not in their hands, but may be traced in the ordinary

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course of circulation, through the hands of trade and manufacture, to the farmer; or first to the laborer or artisan, and finally to the farmer.

but I 9ri All trading, and manufacturing, as well as farming capital, is jemployed in reproduction, through the labor and agency of men and animals. The active and industrious are ever aiming and exerting their skill and efforts, in extending their capitals, by adding therete. so much of their gains as they do not disburse in the expencgs of living, or their pleasures. It is this energy, that in a prospering country, is ever augmenting the demand for labor, and by furnish ing meanis- of subsistence, and the luxuries and conveniences of life, increasing the population. - Population and agriculture bave mutua! action and reaction, each generating the augmentation of the other, in proportion to its own increase; provided the price of production, and the wages of labor, are a just remuneration, to stimulate and reward exertion to do

From this view of the course of the circulation of money, it is manifest, that any check to agriculture, in the price of its produces will be felt throughout the whole community. In proportion to the price of farm produce, will be the quantum of the money in the circulation, which commences from, and returns into it, uno de lo

This may be illustrated by simply putting the case in the person of an individual farmer. : i11iul 11631st, nb, spots 3411 1930ust.

Suppose in one year the sales of his produce amounted to 5,000ks out of which there remained to him ja pet profit of 500l.; on 10 per cente, after all rexpences and outgoings...si putea sa il

Of this sum he allowed himself to expendi sool., in the deceptand comfortable maintenance of his family, including suitable education for his children. 1:0 i 91844' 41- !!!!! lielie nie i pubisit - 1001, he appropriated to defray the expense of improvements and conveniences calculated to augment the future produse and profits of his farm. 1

164) egli 2001. be laid by as a saving towards a fund he was saising for future exigencies and family provisions, and for that purpose, to be invested in the funds, or on securities at interest. The other 4,5001 would be expended in wages, rent, taxes, &c.

In chis instance it will be seen to demonstration, that the whole of the 5,000ll passes through the channels before described, giving life and vigor 'to labor, trade, and manufacture, and the support af Governmentptilliits retum. d 03 Boky to 16.11!).0; yote

Now put the supposition of the sudden depression of the price of agricultural produce; (as happened in 1814, ander1815); so that the next yeatls crop yielded no more than 23500l." His expen: sonder dage to enos eld to look??.

2018.644 15:yeshed This may be considered to be putting an extreme case-but the conclusion will be the same, if the reduction in price is supposed to be one-third.

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ces of cultivation, taxes, rent, tythes, and other outgoings, remaining the saine-except poor's rates, which were increased 4-where is he to find the taxes, rent for his landlord, or the subsistence of his family? They must come out of his capital instead of his profits, and he most either tesort to his fund of savings, (if any such exist, reduce the stock on his farm, or run it out by cross cropping and shorteuing his labor and expences of cultivation.

1 The ruin of the farmer' is obvious ; bat the object of the illustration is the consequence to the community. He will in future employ less labor, because he has less means.

instead of 5,0001. thrown into circulation, as in the preceding year, 2,500l: only is put in motion. The great receptacle, trade, is consequently only half filled---each tradesman finds a material dinjipution of his profits ; and as the farmer can no longer indulge in luxuries of dress, wines, furniture, horses, carriage, &c., the manu. facturer, who exists by the creation of articles of luxury, and who lies at the remote end of thestream, first feels the drying up of the spring, by the great diminution of the demand for his produce; that demand having of late gears grown to an almost immeasurable extent, by the taste for dress, which had spread itself through the great multitade of the lower classes, in consequence of the cheapness of its articles, produced by the power of machinery; every laborer's wife and daughter being dressed far better than farmers' wives and daughters used to do, and the farmers' and lesser tradesmen's families idressing as well as the gentry of the land, and oftentimes better. a ta

The vast profits and huge capitals of the manufacturers, and their consequent boundless employ of hands, arose from the almost infinity of number of the articles of small price they produced each yielding a very small profit—more than from the comparatively small number of expensive fabrics and articles carrying larger proportions of profit.. So immense was the consumption of small articles, that some years ago, during the war, I was assured by the chief clerk of a silk-man in London, that not unfrequently the house received a single order, to the amount of 24, or 25,00l, for the bindings and tasselstof half-boots and hats.

What then must be the shock to nianufacturers of this description, by the sudden drying up of the grand source of employ for their machinery and labor. One manufacturer lately, rather boastingly than wisely, declared, that a reduction in the laborers' wages, in his single concern, had taken place to the amount of 50,000li in one year, she watu .

. 20. The farmer can no longer drink wine, purchase handsome furniture, wear boots, keep hunters or servants, educate and dress his daughters at boarding-school, or his sons at superior schools

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