n both cases, the truth is, that
capital may be produced by industry, and accumulated by economy: but
jugglers only will propose to create it by legerdemain tricks with
paper. I have called the actual circulation of bank paper in the United
States, two hundred millions of dollars. I do not recollect where I have
seen this estimate; but I retain the impression that I thought it just
at the time. It may be tested, however, by a list of the banks now in
the United States, and the amount of their capital. I have no means of
recurring to such a list for the present day: but I turn to two lists in
my possession for the years of 1803 and 1804.

In 1803, there were thirty-four banks, whose capital was $28,902,000

In 1804, there were sixty-six, consequently thirty-two additional ones.
Their capital is not stated, but at the average of the others (excluding
the highest, that of the United States, which was of ten millions)
they would be of six hundred thousand dollars each, and
add.........19,200,000

Making a total of........ $48,102,000

or say, of fifty millions in round numbers. Now every one knows the
immense multiplication of these institutions since 1804. If they have
only doubled, their capital will be of one hundred millions, and if
trebled, as I think probable, it will be of one hundred and fifty
millions, on which they are at liberty to circulate treble the amount.
I should sooner, therefore, believe two hundred millions to be far below
than above the actual circulation. In England, by a late parliamentary
document, (see Virginia Argus of October the 18th, 1813, and other
public papers of about that date) it appears that six years ago, the
bank of England had twelve millions of pounds sterling in circulation,
which had increased to forty-two millions in 1812, or to one hundred and
eighty-nine millions of dollars. What proportion all the other banks may
add to this, I do not know: if we were allowed to suppose they equal
it, this would give a circulation of three hundred and seventy-eight
millions, or the double of ours on a double population. But that nation
is essentially commercial, ours essentially agricultural, and needing,
therefore, less circulating medium, because the produce of the
husbandman comes but once a year, and is then partly consumed at home,
partly exchanged by barter. The dollar, which was of four shillings and
six pence sterling, was, by the same document, stated to be then six
shillings and ni