the United States of America, 31 



and buildings, or is engrossed in manufactures and commerce, 

 hardly exists in the United States, except in the great cities, 

 and even there it has the facility of being invested in the local 

 banks and other monied institutions, that have hitherto ab- 

 sorbed the capitals of the few who are not engaged in active 

 business. Those who are willing to incur the risks of trade 

 look for larger profits than a canal is likely to afford ; those 

 who seek a secure income without encountering the vicissitudes 

 of commerce, have hitherto preferred the stock of banking insti- 

 tutions for the investment of their capital. Hence in many 

 projects for internal improvements, the privilege of banking has 

 been attached to the charter for canals, as a bait for subscrip- 

 tions. It is hardly necessary to state that this heterogeneous asso- 

 ciation has not been, generally speaking, a fortunate one. The 

 profits of banking are gradually falling, however, and must soon 

 become so small as to compel the increasing permanent capital 

 to be invested in enterprises of this nature. But, in the mean 

 time, we cannot help wondering, that the capitalists of Europe, 

 who have been for some years past searching in all directions 

 for new modes of investment, should not have turned their 

 attention this way. So little however does the character of 

 these enterprises, or the resources and good faith of the states 

 of the American confederacy, appear to be understood in the 

 money markets of Europe, that we are inclined to believe that 

 the most advantageously situated canal route would fail in 

 obtaining subscribers, although South American mining stock 

 would be eagerly taken up ; and we know, that, at a time 

 when Greek, Columbian, and even Poyais loans were sought 

 with avidity, the state of Ohio could not obtain a loan for the 

 execution of the important work we spoke of in the former 

 part of this essay. The money for the last was indeed readily 

 obtained in the United States, but at a rate of interest higher 

 than is usually paid in Europe. There is, no doubt, great cau- 

 tion to be employed in determining between the different pro- 

 jects of canals with which the United States are teeming ; nor 

 are all the states equally capable of paying the interest of, or 

 redeeming loans ; but the discrimination may be effected by 

 the exertion of ordinary prudence. The canal in question, for 

 instance, is one whose cost can be ascertained within a trifle, 



