Principles and observations on many and various subjects, for the health of nations and individuals / by John Moodie.
- Moodie, John
- Date:
- 1848
Licence: Public Domain Mark
Credit: Principles and observations on many and various subjects, for the health of nations and individuals / by John Moodie. Source: Wellcome Collection.
Provider: This material has been provided by The University of Glasgow Library. The original may be consulted at The University of Glasgow Library.
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![causes nothing but ruin and destruction, and loss of credit and commerce to the nation; while we are ruined or at a stand-still, other nations take our business, and by the ruined and the credited selling goods below their value, they cause ruin to the honest, and independent, and sound capitalist, and manufacturer, and trader, who cannot compete with them. Partners are very liable to over-trade and ruin a bank. It is only natural to suppose that credit in the case of banks, as in every and in all, and in our daily transactions, be they small or be they large, must cease when we are not able to pay any more, and no one will credit or trust any one who has no money, or property, or the sure chance of having it beyond that which he really, and truly possesses. No one will lend or trust us after our capital is expended, and this is the case in all transactions, from a farthing to a million of pounds ; and it must be the same in the business of banks, and more particularly when it is not done, it is the cause of general ruin. Look at all the facts and causes of any single bank failing, or becoming bankrupt, and you will see the cause and the evil results of it in the case of many. Joint-stock banks, whatever good they may have done, have in Bank of Eng- many cases been a cause of much harm to the country generally, land, Joint- and to the particular district in which one or more of these has been stock Banks, situated,—they have been the cause of improper, rash, and ill- Banjj an(j judged speculations, having been got up without the speculators or Bullion. originators of these speculations having the means of carrying them ■ on, although they might have the talent, and business habits to im- prove and make them take effect; they have been the cause of speculations being suddenly and prematurely got up, on account of the ease, and readiness with which they have advanced capital, and credit to the speculators in these; and they have also been a cause of the harm done to the country, from greedily becoming share- holders and proprietors in such speculation■•, and have thus ruined their banks, as well as done great injury to the country, from en- couraging ill-judged, and ill-timed speculations. The joint-stock bank companies, and the needy speculators, have raised much out- cry, and thrown the blame of the country's distresses on the Bank Bank of Eng- of England's want of liberality in making advances to all, and ]^d's libera- sundries who may wish and require it, whether they have property, advances. ° credit, or influence, or although they have any of these, without considering that they may be forming, and be connected with specu- lations prosperous or not. No mercantile man who depends on, and trades with his own capital, will doubt but that the Bank of Eng- land acts wisely, and according to all the laws of human nature; and as commerce has been, and at present is, and by those means without which traffic and the world could not go on, merely on not making advances, or giving credit to any but those who are able, and can satisfactorily shew that they are able, to return back what they have received, and also to preserve her own safety, she suits the costs of her advances in accordance with the state of commerce here and abroad ; she would most likely share the same fate as the joint-stock banks, and merchants, who so easily and readily make advances, and give credit for the chance of gaining, but with the certain risk of being ruined, if she did not. We have little hesita-](https://iiif.wellcomecollection.org/image/b21449302_0293.jp2/full/800%2C/0/default.jpg)
