The enquirer. [volume] (Richmond, Va.) 1804-1815, 1810-12-13
FROM BELL's WEEKLY MESSENGER.
CAUSES OF THE EXTRAORDINARY
FALL OF STOCKS,

~ Ky
FALL OF STOCKS.
1t Cannot be pleasing to us to hang upon
the symptoms of the decline of the CONNER
cal wealth OF the country. These public
misfortunes, however, for so thew NAV h,
called, aie so many diseases OF the body mol,
INC, and the readiest way to administer to
the cure. is to probe the causes to the bottom
One consequence is at least certain. either
we shall ind the evil inevitable, and there
lore pear 1t patiently, Or we Shall find 1t Gu
remedy. '"e
IL is scarcely necessary to make the pre-
urinary observation, that Stocks are debs
or government distributed, OF rather supnos
ed to be distributed, for the convenience OF
circulation, into hundred pound shares that
the capital, or hundred pound, as far as Gov
ernment Is concerned, is extinguished. the
hoids rs having no expectation or reasonable
WISH for It's payment, but that the shares
sun Dear their market price, SO that the
noider by carrying his portion to mar
He, may convert his interest into princi-
pal Al that he Stakeholder expects
from Governm ent is the payment of the in
terest '
Inc truism OF first principles is no sufici
ent objection against the use of them. Il
- only by these principles that our notions
are Kept distinct and our deductions are
Clear. For example, manifest conse
quence Immediately arises from wha. we
nave above said AS the Stakeholder does
neither expect nor desire a repayment of
Tue caPital BY Government, so he seeks no
security nan that Government may
De enabled TO pay him his interest He
cares not whether Government he ,vor,b es
pounds or not, as long as it can nav hin, tbrea
POUNDS. ne value OF Stocks, therefore, are
not sunk In the eyes of Stockholders or n
therS by any thing which does not menace
the security OF their interest Now very
rev pubic cslamities can happen of such
nature as to threaten the existence Of
o'ate inere are very few pubic calami
ees' therefore, which can impair the seen.
rity OF government. and thereby affect The
pubic Funds on the principle of a dino
lsueo power OF soiVency on the part of the
Sta,e. f-' - TIC
Inc conclusion we would draw from th,s
10, 'uat IL Is an error to impute the rise or
lall OF the SiockS to the increased or din;n
isneo state or public credi,, and to any rise
ana rail- OF the estimation Of public faith and
soiVency. The credit of Government can
ho' oe anected except where It's existence is
endangered No., surely the English Gov
erhnieht Us neither strengthened nor 6imin..
isned, whether one Barbarian or anothe,
reigns on the thrones of Russia. Tnrkev or
Persia There is no reason whatever. thee
lore, on the principles of public credit that
the English Stocks should be affected nv th.
DISASTERS On the Continent, as long as those
disasters are OF nature which do not inn
medIately tend to endanger our own Coy
eminent. And as none of them can he If
that nature, we will almost venture IN ae-
sert, that since the extinction of the he
mocrauc parties In England, the Stocks
ha uet- tic> c.lI
any approximations of the security of CIV.
ernment
lhe fluctuations OF Stocks, therefore are
governed less by opinion than by other di
rect Causes Some Of these Causes are i'm.
medIate and are of a Commercial nature
and OF ma urai commercial operation. -
Others are the eifeC of jobbng and eamb-
ling. hese will be best understood bv a few
examples
La The firs' place, Stocks invariably fall
I'D war, from national and commercial eau
seS' ne interest OF stocks IS lower than
the same capital will produce ifempIoyed in
other ways. This low price OF Stocks
however, is made up to the merchants and
men oil business by the facility and promp
titude OF its sale and purchase The Stocks
are mus MADE IN time oil peace to answer
the purpose OF q prIyate Banker TO the mcr
Camille world They there deposit that Dor
ton u their capital which they do not want
from day 10 day. but which at some dav they
may want, and therefore must not have too
far out OF their reach. In a season of peace
therefore, half the mercantile capital of the
nation is perhaps in the Stocks. On the
otner hand, III war, the same portion of CAPT
tai Is no longer wanted for commerce and
as the stocks pay comparatively the lowest
posSlDlS Interest, so the mercantile men i'm
mediately Withdraw their money to employ
1t to more advantage in the purchase of
lands, houses Hence, what has often an.
Peared extraordinary, the rise OF landed
properly IN war, and the fall of it's price upon
the return OF peace.
Ihe loans to Government like wise affect
the Stocks in double way 4; the lenders are
compelled TO sell Stock ia order To find mo.
ney, and Government, at the same period.
IN order to pay them, creates new Stock to
the amount otthe loan. The Stock. marker.
therefore is crowded with sellers, and Stocks
IN consequence fall, for the same reason as
all other commodities in an overstocked mar. |
ket, there are more sellers than BUYERS. /
aud more STOCK titan IS requiied by the ia. !
-dra Gelnaftl,