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ed, through the medium of labour; that is, that he be furnished with work, and be remunerated with the proceeds.
“5. That those who are enabled only in part to earn their subsistence, be provided for, to the amount of that deficiency, only.
“ And hence, that all our provisions for the relief of the poor, be so devised as not to interfere with this law of our nature. By so directing our benevolent energies, the poor are better provided for ; they are happier themselves; and a great and constantly increasing burden is removed from the community. It has been found that alms-houses, conducted on this plan, will support themselves; and sometimes, even yield a small surplus revenue. This revenue, how. ever, should always be given to the paupers, and should never be received by the public. The principle should be carried out, that the labourer is to enjoy the results of his industry.” p. 125--127.
We next present the views of our author respecting the duty of government in regard to Education. Intellectual cultivation tends to increase the industry of a people by exciting them to exertion, and directing that exertion. The efforts of government may therefore be usefully directed to the increase and dissemination of knowledge. The former may be promoted by the establishment of colleges, universities, and other seminaries of learning. They should be furnished with the requisite libraries and apparatus. “They should be so governed, and the remuneration so adjusted, that teachers should be placed under the strongest stimulus to labour for the promotion of science, and to communicate most successfully kuowledge to their pupils.” When colleges become places of literary leisure or indolence, they are not only useless but hurtful. This leads the author to doubt whether endowments for the support of professorships are useful; "at least, so far as they tend to render a teacher's support independent of his own exertions." He thinks the teacher should be paid by the sale of tickets of admission to his lectures, or by a salary varying with his ability and success. We take the liberty here to differ widely from him. We avow ourselves the earnest advocates of literary endowments. Without them, we believe there would be no profound science. If a teacher's remuneration is to depend on the sale of his tickets, it must be a part of the system, we suppose, that the students be at liberty to purchase or not, that is, to pursue the science he is appointed to teach or not. Now we believe but a small portion of the students in any American college would pursue the higher mathematics or classics if it were left to their option. We judge from facts that occur in institutions where a popular course is allowed, and also from some slight acquaintance with
the character of the age. Now, suppose these optional courses were every where adopted, and that young men, incapable of deciding as to their own wants, were left to pursue only such studies as they, in their wisdom, deem practical and important? Who does not see that a superficial race of men would go forth to dwarf the intellect of our land. In the headlong rage for new and shorter systems, no college could sustain itself in a rigorous practical adherence to an elevated course of study without endowments. Such systems may do in countries where certain qualifications are rigidly required of candidates for literary and political stations; they will not do in our free and enlightened" republic.
Again, government, says our author, can promote the increase of knowledge by bestowing premiums, rewards, &c. upon those who have made useful discoveries. The only rewards conferred in this country are for military or naval services. The author dryly remarks, that he cannot see but that Fulton and Whitney deserved as well of their country as if they had "captured a fleet on the ocean, or routed a tribe of Indians in the forest."
The same thing is also done by laws of copy and patent right. These last, we would remark, are the only means that our government are likely to use for the rewarding of discovery. They excite to effort only in relation to objects of palpable utility. No copyright or patent will induce a man to devote himself to a life of abstract scientific investigation. Such laws can offer no adequate reward to labour of this nature. If it is important that the labour be performed-and that it is important cannot be denied—then some provision ought to be made for it. Adequate literary endowments are, in our opinion, the readiest way to promote this end. Suitable rewards should also be added on the accomplishment of valuable results.
Government should also improve the intellectual character of a people by the dissemination of knowledge. Our author thinks that, as a stimulus to intellectual improvement, the right of suffrage should be restricted to those who can read and write; that provision, in part, should be made for all children under a certain age; and that seminaries be provided for the suitable qualification of teachers for the primary schools.
President Wayland thinks that it is on its moral more than its intellectual character that the prosperity of a nation depends. Hence moral is still more important than intellectual cultivation. Hence all true benevolence can be defended on principles of political economy: sabbath schools, the circulation of the Scriptures, the preaching of the gospel, are of the very greatest importance to the productive energies of a country. Fo. reign missions (which have been attacked by infidel political economists) are in accordance with the strictest lessons of Political Economy. Make Christians of men, and you civilize them, you render them industrious and frugal, and consequently rich. The resources of the country are developed, it becomes a better customer to other nations, and gives additional impulse to their industry. Facts in the history of missions, we add, are in keeping with the truth of these remarks. Godliness is thus profitable unto all things, having the promise of the life which now is and that which is to come.
Our readers will be desirous of learning our author's doctrines in regard to "discriminating, or, as they are frequently called, protecting duties." He is a thorough-going advocate of the liberal system. Such duties, he thinks, cannot increase the capital of a country, or increase the number of its labourers; if then it have any effect on production, it must be by creating a greater stimulus to labour. In opposition to this, he shows that the stimulus to labour is decreased in a variety of ways; that it injures our foreign market, and creates a change in the course of industry and of capital in a nation highly disadvantageous. We give only the results of his reasonings; the limits assigned us will not allow of an analysis of his processes.
Bounties are the same in principle as discriminating duties; they are less objectionable, because the price of the article is not visibly raised, and hence the consumption is not so much diminished: they are cheaper moreover, for we pay only for what is made; while by discriminating duties we pay the same, whether any thing is made or not.
Dr. Wayland next considers at large the objections that have been offered to the doctrines he has laid down. We shall not present an analysis for the reasons above assigned. We would remark, that we consider his reasonings in support of the liberal system as sound, and his answer to the objections usually urged against that system as satisfactory.
While we thus cheerfully agree with our author, we regret that he has said nothing respecting exceptions to the general rule. We are disposed to believe that the exceptions are extremely few, yet, owing to a variety of causes which we need not here specify, and some of which are not perhaps strictly economic, we think there are exceptions, and in a treatise like the one before us, the fact, at least, ought to be stated. There is a tendency on the part of the people of these United States to cry out for “free trade,” “no monopolies," &c., and to rush, as usual, into extremes. This spirit needs to be repressed rather than fosters1: and something cou'd be done towards this by a statement of some of the exceptions to the general principics of free trade. Most, if not ail, of the abiest adrocares of this system have admitted that sich exceptions exist. We regret that Dr. Wayland has not done the same, and so far throwa the weight of his influence into the conservative scale.
Government, he thinks, should promote the industry of a nation by originating knowledge, which must otherwise be obtained at great individnal expense-by experimental farms of which the results should be registered and published; and - by experimental manufactures, which might show, from time to time, what branches of manufacture could be profitably introduced into a country, and how they might be most successfully conducted,"—and by - confining themselres to their own appropriate duties, and learing erery thing else alone."
The agency of government in regard to coin should be confined to regulating its purity, its form and size. Gorernment has no right to prevent the exportation or importation of specie, nor arbitrarily to alter the value of money, nor to fix the relative value between the precious metals.
The subject of Banks is treated at large by our author in a very clear and satisfactory manner. He gives a large amount of information, that every man ought to possess before he ventuires to converse or discourse on the subject. But on this subject as on others, men are prone to be oracular in proportion as they are ignorant. We shall give our author's thoughts on a few only of the topics connected with this extensive subject. And first, of “the advantages of banks as institutions of discount and loan.” Banks do not create capital, but they “ are capable of rendering the existing capital much more productive;" and they do this by the facilities which they afford for the extension of credit. If the labourer have not tools, unless he can procure them on credit, he can produce but little ; so also if he have not the material on which to exert his industry. By means of credit, those who possess more capital than they wish personally to employ, may, without labour, derive from it an equitable revenue; and those who have less than they can profitably employ, can procure it, and thus be enabled to enjoy the full benefit of their skill and industry.
Banks collect together capital which would otherwise be scattered and useless, profitably employ the capital of such as cannot unite with it the labour necessary for its productiveness, such as widows and orphans, and such gains of the labourer as cannot be used by him till he has accumulated a considerable sum; also the capital of those whose business cannot be in
creased by an increase of capital-as the physician, lawyer, clergyman, and in many instances the merchant. They are useful thus to every class in the community. The utility of banks would be still further increased if they were in the habit of receiving small deposits on interest to be drawn for at the pleasure of the owner. This is the case with the Scottish banks, which are better conducted than any institutions of the kind at present known. The following is Dr. Wayland's account of them :
“1. As offices of deposit, they receive all sums, not less than £10 sterling ; and, for such deposits, allow interest. Less sums than this are placed in the savings' banks, until they become suffi. ciently large to be deposited in a bank. These deposits are, generally, made by persons who labor in agriculture or manufac. tures. The whole amount thus deposited is equal to about twentyfour millions pounds sterling, or not far short of one hundred and twenty millions dollars. This large sum is thus redeemed from idleness, and added to the productive capital of the country.
“ 2. They discount notes, as our banks do, but they have another mode of loaning, which is called cash credits.
“ When a man wishes a cash credit, he finds hondsmen, who pro. mise to indemnify the bank for all that it may lose, by loaning to him within a certain sum ; or else he places real estate in the power of the bank, to a sufficient amount to render it secure within the sum which he wishes to borrow. The bank then opens with him a cash account, or allows him to draw for any sum within the specified amount. He is charged interest only for the amount which he borrows. As fast as he is in funds, he deposits all he can spare, in the bank, and, for every thing thus deposited, he is allowed interest; so that his interest on deposits always diminishes the in. terest on his debt. Thus he borrows and pays, successively ; and, at stated seasons, the accounts are adjusted.
“ The advantages of this system, are : 1st. That it enables an in. dustrious man to procure credit to the amount of his real estate, and, hence, to do more business with the same capital than any where else. 2d. That by rendering every deposit valuable, it stimulates him to frugality. 3d. It enables the bank to understand, more correctly, the state of affairs, and, hence, to know how de. serving he is of confidence. 4th. That this may be done with greater safety, than in any other mode, is evident from the fact, that while the Scottish banks have been liberal in their accommoda. tions, and have, by the acknowledgment of all, been of the most important service to that country, but one of them has ever been known to fail. These are, surely, the best evidences of the wisdom of any practical system.” p. 288–290.
Banks are useful as institutions of circulation, by furnishing