Alexandria gazette & daily advertiser. [volume] (Alexandria [Va.]) 1817-1822, 1820-03-09

e'e space OF three years been redp
ced from $4,000, 900, to $4,000 aoa
This reduction exceeds ffty. nine Nv.
cent. Of the zchole circulation of ,a re-
The fact that the currency in 1915 and
1916 was deprecated, has not sencibn
diminished the effect upon the commn,;
ty, of this great and sudden reduct;on
Whatever was the degree of its denre
citation, it was still the measure Of yalno
It determined the price of labor, and
OF all the pr operty in the community
A change so violent could rot fail NJ
der the most favorable auspices in otbo,
respects. to produce much distreco "
check the ardour of enterprise. and ."
rinusly to affect the productive enor
gles Of the nation. The reduction wa,
in fact, commenced under fayorahIa
auspices. During the year 1877, and
the greater part 1918, all the surnIna /
produce of the country Commando 10
foreign markets, higher prices than or
ordinary. The rate of foreign ev
change afforded no inducement for tbo
expectation of specie for the purpose n
discharging debts previously contract
ed. The only drain, to which the me-
tallic currency was subject, was fhe
demand for it, for the prosecution If
trade to the East Indies and to China
In this trade. specie being the pripci
pal commodity, and indispensable to its
prosecution, the amount exported dur
ing those years was very great, and
seriously affected the amount of circu
lation, by compelling the banks to d.
minish their discounts.
Notwithstanding the drain for this /
commerce during these years was uru. /
sually large, every other circumstance
was favorable to the restoration of The /
currency to sound state, with the
least possible distress to the community. {
The capacity ef the country to dis. 1
charge large portion of the debts con. /
tracted with banks, and which had &C. (
casioned their excessive issues, was
greater than at any former period, and
than il will probably be again for /
lapse Of successive years. The effort
to reduce the amount of currency, dur
ing those years, though successful to a
considerable degree, was not pursued
with sufficient earuestness. In the lat :
ter part of 1918, when the price of the
principal articles Of American produc- +
tion had fallen nearly SO per cent. in
foreign markets when the merchant,
needed the aid of additional loans to
sustain him against the losses which
he had incurred by the sudden reduC-
ton in the price Of the commodities he
had exported, he was called upon to
discharge loans previously contracted.
The agriculturist, who saw bis income
reduced below his indispensable neCcso
stiles the manufacturer who was nat
only struggling against foreign COM
petition, but who saw the sale Of his 5
manufactures reduced by the incapaCi. E
ty of his customers to buy; in fact all s
the classes of the community, under cir
comstances so adverse to the command E
Of funds, were subjected to curtailments Z
whenever they had obtained dis
counts"
MIR. Crawford pursues the effect OF +
this state of things i'll the following re- I
Elections.
"All intelligent writer's upon cnrren- {
cy agree, that where it is decreasing +
in amount, poverty and misery must &
prevail. The correctness Of the opn-
ion is too manifest to require proof
The united voice of the nation atteSts
its accuracy. AS there is no recorded
example in the history of nations OF 3
reduction of the currency so RAPID, anu
so extensive, so, but few examples have
occurred, Of distress SO general, ana +
so severe as that which has been eXhl-
bited in the q. States. To the e'lIS
of a decreasing currency are superau'
ed those of deficient currency. But
Notwithstanding. it is deficient It IS
still deprecated. In several OF tile
states the great mass Of the circulation
is not even ostensibly convertible INTO
specie at the will of the holder. Dur,
ing the greater part Of the time that
has elapsed since the resumption o.
specie payments, the sOnyertibiIIty o.
the bank notes into specie has been Fa'