Alexandria gazette, commercial and political. [volume] (Alexandria [Va.]) 1812-1817, 1816-11-04
LETTERS
RI THE R.a.Hr DIRECT0Rs,

On the pernicious consequences OF the
prevailing system Of Banking Dpera-
tions and on the facility ofreduclag
discounts to any extent, as soon as the
Bank OF the United States commences
business. by M. CAREy.
LETTER II.
GEaTLEMxx,
AgreeabIy to my proposed plan, pro-
coed to draw an ostline of the calanitous
state Of trade and commerce. The pic
ture shall be true one. : It is not my
fault, if il be heart-reDding.
I shall previously castsa retrospective
glance atthe times that are past u gone.
When similar ones are to return, is in
the womb OF time.
Last year we closed an eyentful war.
ia which every thing dear t. nations was
at stake. We acquitted large increase
of glory--and DIR character was elevated
in tho estimation Vi all the nations OF
Europe. When the alarms OF war had
subsidized, and blessed peace snce more
WELCOMED in the restoration of trade and
colnmsrce, we anticipated a series Of IN.
interrupted prosperity and happiness.
Fora time our tondest hopes were realiz.
ed. The whole nation, from the centre
to the remctest extremities, exhibited the
most glowing scene Of happiness that the
fondest wish of the most sanguine friend
of the eountry could have desired. A
sudden reverse took place, which conf
menced about twelve months since--and
from that period to the present time, q
large portion of the inhabitaats OF our eli.
ties have experienced more distress than
they suffered during, the rayages OF Ge-
sofating warfare This lamentabls state
of things has arisen from the aeleterieus
spirit Depreciation and evertrading, to
which the extravagant extent OF discounts
by some OF the Banks here and elsewhere
gave every facility-from lending money
too freely at one period, and Withdrawing
it too hastily at another.s
The leading outlines Of our present 81.
tuation, are a. follow 49,
1. Renittanees from the country, on
which great portion of our citizens de-
pend for the discharge of their engage
meats, fall miserab!y short of what they
had right to expect.
3. Western notes, which form large
proportion Of the lev remittanees, receiv.
ed, are at discount Of frsm 6 to 20 per
cent.
5. The regular sales Of goods are very
slow and dull.
4. Goods, foreign sad domestic, when
sold at auction, are sacrificed at q loss of
from 90 to as per cent
S. It is hardly possible to raise meaey
on real estate of any description.
6. Those who held bills receivable. in
tended to meet discharge of their bills
payable, are obliged toprolong the period
OF payment, from the inability of their
debtors to pay, and from the danger of
fsrcing thoss debtors to stop payment al
together.
T. Thus pent up and shut out from
their resources, many OF our citizens. be
sides bank engagements, owe heavily to
the government for duties, and to indivi-
duaIs for goods purchased,
8. Money cannot behad of the brokers
but at rate OF from 18 to so per an
mum. &
8. It's extremely difficult and hardly
possible, 10 procure new discounts at
Bank for any nste, how solvent soever
the drawer and indorser may be. New
accommodation notes are absolutely pro-
|scribed.
10. Various bankruptcies have taken
place: aud many pc, sons are " lettering
Ito tlir fall," and hanging on the very
verge of the Precipice OF bankruptcies
That this is a coriest portraiture in al!
Its items--and that il is susceptible Of
great application, no man at all ac-
quaiated with the state of our city, will
attempt to deny, without Offering gross
violence to truth.
LIN these circumstances, the hope or e1-
pectation Of making any great reduction
of discounts, or diminution of the amount
of notes in circulation, 10 the child of
,follyor reconsideration: aud the attempt
TO efcEtit must produce new scenes Of
ruin OF the most disastrous kind. ard to
"a most alarming extent. Should the at
tempt be continued, | shudder to consi.
der the consequences.
When you have calmly reelected on
|thesenvarious items, and brought them
fairly to the test of truth, | appeal to your
feelings, to the duty you owe to fhe public
in the high and powerful stations you
fill, to decide upon the propriety of the
system pursued for so many