swept away with the effects of the real speculators. Take another case
equally common: A young man commences business alone, or in company
with others: they have intelligence, ability, and honesty, but little
capital. A capitalist, who, perhaps, conducts some larger business of
his own, might, ingrafting kindness on prudential considerations, be
inclined to embark with them to a certain extent; but he finds, that
instead of a prudential step, nothing could be more thoroughly
imprudent. He will have to embark not only the small sum he destined
for the purpose, but his whole fortune. Dealers who have transactions
with the young partners, will know that a man of fortune is 'at their
back,' as it is termed, and will give them credit and encouragement
accordingly. Without being conscious of any dishonesty, the firm will
be led to trade, not on the capital which their friend has advanced,
but on the capital which he possesses. Of course, they do not intend
that he should lose his fortune, any more than that they themselves
should lose their business and pecuniary means. But these things
happen against people's intentions and inclinations; and the friend
who wished to aid them with a moderate and cautious advance, is
ruined; while those who were giving reckless credit, and who
encouraged dangerous speculations, are paid cent. per cent. It is the
fear of such a consummation as this that generally makes the
well-intending friend abstain from ultimately committing himself with
those with whom he would have fain co-operated.

It is quite right that trading companies should not trade on false
resources, and be able to laugh at their creditors by placing out of
the reach of the law the funds with which they have speculated. Yet
this can be done under the present system; and there is a class of men
in the commercial world, banded together by peculiar ties and
interests, who are said to accomplish it on a large and comprehensive