Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1833-12-31
Richmond, Tuesday, Dec. 81.
Causes of the present Distress.


The N. Y. Standard contends, that the withdraw
oil of the Deposites is the necessary of orr
commercial embarrassments-that the State Banks
there shave received miions-and they having
discounted 8, in addition to their former business
and that the u. s. Branch Bank could not have done
more:
There oher causes, (says the Sandard) "however
which might have produced even embarrassment mt
than Is believed to exist. The u s. Bank has within
few months diminished its loans BY twelve or fifteen
millions, and the available inca of business men have
oeeh essened by that amount. The fact is undenabe
however opinions may differ the motive and the ri,s
OF tue measure. The friends Of the Bank plead that
o curts'iment was necessary, in order TO pay of the
c.aims OF the Government; others know WE'LL however.
t'st h'teen millions not required five, and
they condemn the curtalment unnecessary oppres.
sive and hagitous. The the more onerous
as coming at time when than the usual faci
ties were required by merchants In consequence of Mr.
Cays change from long 10 short credits Governmen
duties, and to cash duties, which alone made an addition
to the burdens OF the year Of ten to twelve millions
There was increase OF imports also of ten to
millions above those OF the preceding YEAR upon
gwen when the curailnent by the Bank was not and
could not be orcseen These also had be for
aud at the very time when these were
crushing down the mercantile community, the Bank
selfish inqui,y the facilities which tlcy
and were entitled to expect from it, and adopts course
also which straitened and weakened extremely the
Efforts that the local banks made for the general
hese the Of the that has
prevailed in the money market There has been twenty
to thirty millions more 10 be paid than heretofore and that
have been caraed not only eight ten millions BY the
Bank but vast amount in addition, by loo banks
who were compelled il by the hostile and unfair course
OF the giant oppressor. II not possible that difficult
ties should not arise from these causes and IL is worse
han idle to ascbe their effects the removal Of tho de-
posites- mschievous, besause encourages the alb.
surd notion that their restoration would abae the evil in.
stead OF enhancing and proongng would be it's Ger.
tain effect Whether any measures Of relief be adop ed
or not the crisis certain long be and
meanwhile II is well to consider If there be really SO
much distress has leen asserted aud among whom il
prevails"
The Pennsylvania mentions another fact, to
shew how inaccurate Mr. McDuffie is i'm his Political
Economy. But he is peculiarly unfortunate in such
notions. Remember the 40 bale theory and his
confoundng the amount of the imports with the
amount of the duties on them. In his last Camby-
ses speech, he ascrbes the reduction in the prices of
Cotton TO the arrangement ofthe currency incidental
to the veto, and the removal of the Deposites The
Pennsylvania gives the following extract of letter
from highly respectable house in Liverpool, to
shew that it has been owing to the fever of specula-
ton raging in that country:
"LIvERpooL, Nov. I'd, 1888.
The panic in the cotton market has increased during
the present week and believe that many sa'es have be
made as low as existed prior 10 The first start have
seen Updnds OF very good quality indeed for which
only was paid yesterday Matters will return TO their
regular course ere long, and whether prices will settle
down at Id, or 3d. 81 10 3D. shal at least have
the advantage OF knowing what are about and have
something like market established"