Credit is either public or private. Every trader ought to possess some estate, stock, or portion of his own property, sufficient to carry on the traffic in which he is engaged : his dealings should also never exceed his capital, so that no disappointment in his returns may incapacitate him from supporting his credit. Yet traders of worth and judgment, may sometimes be obliged to borrow money, in order to carry- on their business to the best advantage. We cannot, however, avoid observing, that the almost unlimited credit given to wholesale',' as well as retail traders, is by no means a prudential, or even justifiable practice; for it not only tends to encourage the most shameful monopoly carried on, at present, with many articles, both of subsistence and convenience (for instance, those of bread-corn and paper); but here also we may discover the prolific source of those bankruptcies which swell every Tuesday's and Saturday's Gazette.
The public national credit is said to run high, when the commodities of that, nation are readily sold at a good price, and when dealers may be safely entrusted with them: also, when houses and lands meet with ready purchasers ; money is borrowed at a low interest ; and, lastly, when notes, mortgages, etc. will pass as currently as money.
Private credit has no accurate scale, and depends entirely on the mutual confidence of the parties. When it is extended beyond a certain length, without proper con-troul (as is too frequendy the case with families of a certain rank, or fashion), we may safely predict, that the following generally are its concomitant effects, viz. inferior goods, higher charges, inaccurate calculations, and law-suits, which dissolve all future connection.