Free Trade in Capital Or Free Competition in the Supply of Capital to Labour
Free Trade in Capital Or Free Competition in the Supply of Capital to Labour
A Egmont Alfred Egmont Hake
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From this then it is reasonable to conclude that the object of banking is to facilitate the production of wealth by the supply of indirect credit as a medium of exchange. From experience we know, that as circumstances have compelled or induced communities to have recourse to indirect credit as a medium of exchange, so their prosperity has advanced, and that they have attained to a volume of business, or — to use an economic term — an extension of the division of labour, which would be perfectly... impossible without that medium of exchanere, or with coin alone. It follows from this that for a certain amount of DIVOECE OF CAPITAL AND LABOUR 121 prosperity a certain amount of banking accommo- dation is indispensable. From both experience and theories we know that such individuals or classes as have enjoyed the advantage of indirect credit as a medium of exchange have been much benefited, and that such individuals and classes as are de- prived of it, and whose exchanges and co-operation are limited to what can be accomplished with that small part of the universally coveted coin which they, through much sacrifice, can secure, have suffered enormously ; and from this we may infer that when the benefit of banking is extended to the masses of the nation, their poverty may be changed into prosperity.
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