288 :

THE NATURE AND CAUSES Of

ceeded this part of his capital, the ordinary amount of hisrepayments could not, within moderate periods of time, haveequalled the ordinary amount of its advances. The streamwhich, by means of his dealings, was continually runninginto the coffers of the bank, could not have been equal to thestream which, by means of the same dealings, was continu-ally running out. The advances of the bank paper, by ex-ceeding the quantity of gold and silver which, had therebeen no such advances, he would have been obliged to keepby him for answering occasional demands, might soon cometo exceed the whole quantity of gold and silver which (thecommerce being supposed the same) would have circulatedin the country, had there been no paper money; and conse-quently to exceed the quantity which the circulation of thecountry could easily absorb and employ; and theexcess of thispaper money would immediately have returned upon thebank in order to be exchanged for gold and silver. Thissecond advantage, though equally real, was not perhaps sowell understood by all the different banking companies ofScotland as the first.

When partly by the conveniency of discounting bills, andpartly by that of cash accounts, the creditable traders of anycountry can be dispensed from the necessity of keeping anypart of their stock by them unemployed and in ready moneyfor answering occasional demands, they can reasonably ex-pect no farther assistance from banks and bankers, who whenthey have gone thus far, cannot, consistently, with their owninterest and safety, go farther. A bank cannot, consistentlywith its own interest, advance to a trader the whole or even thegreater part of the circulating capital with which he trades;because, though that capital is continually returning to him inthe shape of money, and going from him in the same shape,yet the whole of the returns is too distant from the wholeof the outgoings, and the sum of his repayments could notequal the sum of its advances within such moderate periodsof time as suit the conveniency of a bank. Still less could abank afford to advance him any considerable part of hisfixed capital; of the capital which the undertaker of an ironforge, for example, employs in erecting his forge and smelt-ing-house, his work-houses, and warehouses, the dwelling-houses of his workmen, &e.; of the capital which the under-taker of a mine employs in sinking his shafts, in erecting en-gines for drawing out the water, in making roads and waggon-