Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-04-01

"a.
me mes will only advert instance or iwo taken
out selection, from papers and letters before me- Let
w New Jersey, be one OF these instances, the
e 81 winch Interesting and afflicted town has been in
deed' repeatedly the Senate by the members
from una! State. The population of Paterson l believe
aoou zen 'hoasahd aud it is known TO be population
almost exclusively engaged in manufactures In SEN
temoer last 43 800 spndes in operation in IT, or
these 2i5O0 have stopped, 5000 hers are expec,ed
to stop stock on hand is worked up I am in
formed that the manufacturers Paterson cannot prevail
C co e,r Sonssnees IN Philadelphia and New York, to
OF one. third The cost oil producing the article The means
completely cut oil. '
we may see another instance, sufficiently appalling
III The manufactures in New Hampshire. / understand
cotton mill at Dover, OF 5000 spndes has ceased one.
!auo' anu another was TO cease the 10Th OF this month";
mn With 4oOo spindles, at New Market and another at
& m o, eooo have ceased also; and large woolcn
m'' al place called the Great Falls, employing two or
three hundred hands, has stopped with the rest These
SIR, are instances Of the effect of the experiment. upon
our manufacturing interests.
~ rs often asked how this enormous amount of evil
eou,u spring from cause so apparently inadequate to
produces II! Can be possible that the Secretary has
brought about all this distress simply bv removns fs.v
millions OF dollars from bank into other banks, Sir
no'hng Is more 'Fus and nothing easily accounted
Tor Every commercial country has one great represent
.anve' constantly passing and Acting between all its citi.
xens hs universal representative is money! or credit
IN some iorm as its substitute. Without this agency no.
.ng can be bought and nothing be sold-capai has
no income, and TABOR reward Ii Ia no mora nossL
10 maln'sin the ordinary business intercourse between
ma" anu man. without money and credit than TO main
tain an intercourse between nations without ministers mr.
puohe agents; or TO maintain punctaI correspondence bv
'eer "'hout The mail And all the distress which the
country now suffers, arises solely from acts which have
uefanged Tie currency OF the country the credit of
the commercial community. The country is as rich in
It's general appearance, il before the experment
was begun; that is to say have the same horse.
JANUS sh'p aud merchandise. But the value of these
has fallen; Or 10 speak correctly they have LOST the
power oil being eXcbanged and they have lost this power
because oil the embarrassment which has beiaen The ge
helai medium oil exchange.
DIX months ago state OF things existed his hy prosper
GUS anu saVanageous to the country bu, liable TO be in.
Iuao"s,y affected oy precisely such has now
oeen puno operation upon it, Business was active and
carried 10 great extent Commercial credit was CIV
panded, and the circulation of money was large This
ocuIaop being paper, OF rested ON credit and
's credit Was founded banking capital and bank demo-
sites Fhe public revenues from the time of their col.
lection TO the time OF their were in The ban
and It's branches; and like other deposes contributed ~,
the means oil discount Between the Bank OF the United
States and the State banks there was de,ree oT 49,
uness perhaps oil rivalry, but there was no enpity no
hostility All moved in their proper spheres hormo
nousiy and in order The Secretary disturbed this state
OF peace. lie broke ap all the harmony OF the system
ny suddenly Withdrawing all the public moneys from the
Bank oil the United States he forced that bank TO an i'm
.nema.e correspondent cntailment OF its loans and dis
counts III was obliged 10 strengthen itself: and tbe
State banks taking The alarm, obliged TO
themselves also by similar So that the amount
oil credit actually existing, and which men we re doin
business was suddenly greatly Diminished RANT ac
eommodatons were wthdrawn men could not longer mi
III ther engagements by the customary means: pronerv
eli IN value thousands failed, many thousands more
tanned their Individual credit by enormous sacr6ces and
all being alarmed the future as well AZ i.,rass, Nv,
Tie present. lorebore from new transactions and new en-
gagements Finding nough TO stand still thew do
not atiemptto 90 forward This deprives the industrious
and misery to their doors. This sir is short recai IS
cause and effect This is the history of The FIRST six
months OF The "EXperiment.' 80
Mr. President The recent measures of the Secro,.,,,
ana lie opinions which said be ayowed INV tbnse
VINO approve and support them, threaten wild and ruth
less attack on The commercial credit OF the coun,rv y,
That most delicate and at the same time most imnoron,
agent, in producing general prosperity. Commercial Gre
dit is the creation oil modern times and belongs in IL
y, Dljphfe
governed nations In the primitive ages OF commerce
article is exchanged for article without The noe s
or credit This is simple barter. But i'm lis prooress
symoo oil property, common of value Is intro
uueea 70 'acae the exchanges of property, and this
may be ron any other article, fixed by law or bv
sent but has generally been gold and silver This cor
laniy, Is great advance beyond simple barter hut No
e eSe uSn mas oeen gained ia modern times by pro
c.euhg IRON the mere use oil money the use of credit
Credit Is Tie vital air OF the system OF modern commerce
mas done more ,housend times, enrich nations than
al e MINES OF aIihe world Ii has excited labor sIjmu
lated manufactures pushed commerce over every Sea
ana Drought every nation, every Kingdom and every
small Tribe among the OF men TO be known n 81
The rest Ii has raised armies, equipped Dayes and r.;
umphing over the gross power Of mere numbers i, h.
established national superiority on the oundsGon q, ;
hgence, wealth. and well directed industry Credit ia n
| money what money is 20 articles Of merchandise A
hard money represents property, credit bs
so completely, that there writers of dsncdon esn
cially OF the Scotch school, who insists tia, no hard
ey Is necessary Tor the Interests OF commerce. am not
Of hal opinion do no, think any government can main
lIn an exclusive paper system, without running 10 ex
cess, ana thereby causing depreciation
hold the Immediate converbily of bank no,es int,
specie TO be an indispensable security TO their raainn
ueir value out, consistently with this security and In
uecu ounded upon II, credit becomes the preS, agent
exchange. III is Above that increases h,
anticipating products and that supplies present ,yant:
out oil lutUTc means And as il circulaes comroI;os
without The actual OF gold silver il not onjv save
much, by doing with the constant TRANSPORTATION nj
he precious metals Tom place place but
exchanges with degree of dispatch and pupctualt
Otherwise to be attained. All bills of exchange ali not
running upon ume as well the paper circulation of i
banks belong to the system OF commercial credit Tho
are parts OF one great whole. And, sir unless we are IT,
REJECT the nights oil experience, and 10 repudiae the
dement's which other nations enjoy, and ourselves
hitherto enjoyed, we should project this SYSTEM with I'm
ceaSng wdculncss; take care, the one hand TO eive
IL ull aud fair play nd, the other 10 guard n aos;ot
unidihls Statesmen II we DO not keep Ccaro extremes
or both sides.
very true, that commercial credit and the system
OF banking, as part Of IL, does furnish substitute for
capital lis very true, chat this system enables men TO
do business, TO some extent, borrowed capital; and
those who wish to destroy all such, wisely to that
end by decfying 1t.
This commercial credit. sir depends on wise laws stea
Oily administered Indeed, the best governed countries
are always the riches,-Witb good political systems ma
ural disadvantage, competition, aud the world NAV AL
s be defed without such sysems, climate, soil position
and every hing else, may favor the progress Of wesI
and yet nation be poor. What bat bad laws and bs
Government has retarded the progress OF commerce ere
dit aud wealth in the peninsula Of Spain and Portugal
part Of Europe distinguished Tor its natural
aud especially suited, by its position for extensive
commerce, "h The sea on three sides Of IT, and