The Sun.
London, England, 1826-06-29 00:00:00

E.NEW TVWXB.3

in the body politic, as in the^ body phaysical, the
causes of disease are not unfrequently as ifficult of
investigation an the cure. What were not the proxi-
mate causes for these have been successfully traced ;
but the primary causes of the late, we fear we must
•
say the present, commercial , distress, are still to be
discovered. That excessive speculation, bubble coin-
panics, and over-production, brought on the crisis is most true ;
but the question will still recur, vettence came it that the ordi-
nary channel.' of legitimate commerce were, all of a sudden, too
narrow for the capital of the country? How came it to pass
that the ordinary objects of commerce were of a sudden ithendim-
ed for joint-stock bubbles ? By what unlucky . conihination of
chances did it happen that the supply, at one period more than at
another, so much exceeded the demand ? Tf it be answered, that the
low rate of interest turned a larger 'quantity of capital than could he
easily employed into commercial pursuit', still we have to learn What
produced the low rate of interest. Leaving to those who have
time and talent to resolve doubts, which, in our brief sketches,
we can, at best, but hint at, we observe, that in all cases of dis-
tree* connected with trade or commerce, whether the distress full
upon an individual, or upon a community, the loss of credit
presses with infinitely more weight than the loss of capital. No
nation, like England, can, in the nature of things, traffic except
on credit. Were the whole transactions of the kingdom limited
to cash bargains, strictly so culled, the commerce, both external
and internal, of the country, would be in a great measure awn-
! bilated. The great supporters of the credit of the country are
the bankers. They are the accredited and known guarantees of
the solvency of individuals, who thoneh, perhaps, equally wil•L
vent as their. guarantees, are not equally known and trusted. • The
banker, when he exchanges for the bill of a merchant his notes,
which are the Banker', bills, naively interpo*es the outfit ofh is name
between the public end the individual, and the per centsge which
he demands from the latter, but- which, in_ reality, in the general
balance, falls upon the former, is not to be looked on as interest of
money lent,. but as the premium due, for warranty of the debt.
rNtdoew;wh
ichehnoebvtaeriitiisminesoothfedrisktrirldss
of
come,
the natural course, were the
insurance to operate here, would
be for the Banker to raise the premium in proportion to the
rt4okr;—rociensswohficelxiccazgagiitia scissor that no stop would -be put to
the Banker's bills for the bills of the
merchant. But since the usury laws say—we :Waive hors all
discussion as to the propriety or impropriety of laws, we are
giving facts not. arguments--since these laws say that. the
highest premium of lueureoce which the Banker can demand
is 40 per cent 4) the moment that 6re per cent. becomes, from
ing offspring, therefore,
of commercial distress, is limitation of
any circumstance, insufficient to corer the risk, the hanker re-
fu eft iPsure, or in other words, to discount. The never fail-
dioramas, and as u perfect adjustment of the means to the end,
is not an object of immediate attainment in this, any more than
in other eases, the limitation is almost necessarily pushed farther
thin the distress warranted, and tini'h" by augmenting the Aix-
"der which it was intended to check. Bankers hive been some-
times pained for their charlotte to discounting, in times of
trading difficulty, and perhaps their caution may be sometimes
too easily awakened, but dia. tbsyushould exercise more than
ordinary care grime), times, it. justified hy every.prigtiple efikwu-
elate and common sense. tea have bilked `so long of the
rowlo, that we have forgotten the utter Miaapplicetion of
the. term, We ought to have recollecied, that a panic never
read, in tilt) nature of thiligsl.be 44ntsrons,
_unless.wherOhero
was an enemy to take adViintageq., utiF ootpirereigt 4-017
qessheen a panic, or hail its origin in a plinle, as was PIT"'
ceived, it *het-Ong ere now bave istifileat; aYi
but of laughter, ear ell panics ars as soon as they ere dile-covered.
But although the experience of thousands vouches for tlie sad