Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1836-12-30

creditor States not only receive no money
but their money is carried away 10 the debt.
or States, who, in turn, cannot use it, either
to pay old engagements or 10 contract new.
BY this unnatural process the specie of New
York and the other commercial cities is piled
up in the Western States-not circulated.
not used, but held as defence against the
Treasury; and while the West cannot use
Il, the East is suffering for the want of it,
The result is,that the commercial intercourse
between the West and the Atlantic is almost
wholly suspended, and the few operations
which are made, are burdened with the most
extravaganza expense In November. 1886.
the interest of the money has risen TO TWEEN
ty-iour per cent; merchants are struggling to
preserve their credit by ruinous sacrifices I;
and 1t costs five or six times as much to
transmit funds from the West and Southwest,
as il did in November 1885, or "a, or '32.
Thus. while the exchanges with all the world
are 10 our favor, while Europe is alarmed
and the Bank OF England itself uneasy at
the quanty OF specie we possess, we are sui.
fering, because. from the mere mismappe-
ment. the whole ballast Of the currency is
shifted from one side of the vessel to the
other
In the absence Of good reasons for these
measures, and as pretext for them, il is
said that the country has overtraded, that the
banks have overssued, and that the purcha
sers ofpublc lands have been very extraya.
giant. am not struck by the truth or the
proprety of these complaints The phrase
OF oyertrading is very convenient but not very
Ineligible. II it means any thing, it means
that our dealings with other countries have
brought US in debt TO those countries. In
that case the exchange turns against our
country, and is recti6ed by an expectation of
specie or stocks in the first insiance-and
then by reducing the Imports to the exports.
Now the fact is, that at this moment, the ex.
changes are all in favor Of this country
that is. you can buy bill of exchange on
foreign country cheaper than you can send
specie to that country. Accordingly. much
specie has come in--none goes out this, too,
at moment when the exchange for the las,
crop is exhausted, and that Of the new crop
has not yet come into the market--and when
we are on the point of sending to Europe
the produce Of the country. to the amount Of
eighty or one hundred millions Of dollars
How. then, has the country overtraded2-
Exchange with all the world is in favor or
New York How then can New York be
an oyertrader7 Her merchants have sold
goods to the merchants Of the interior, who
are willing to pay, and under ordinary cir
cumstances, able TO pay but, by the mere
fault of the Government, as obvious as if an
earthquake had swallowed them up, their
debtors are disabled from making immediate
payment 1t is not that the Atlantic mer.
chants have sold too many goods, bat that
the Government prevents their receiving paw
ment for any. Moreover, in the commercial
cities, money can be had. though at ex,rava-
giant rates, for capitalists add to the ordinary
charges for the use Of it, high insurance
against the loss Of it. II is not then so much
that money is not to be procured, as that
doubts and alarm increase the hazards of lend
ing it.
Then as to the banks II is quite prob
able that many Of the banks have extended
their issues-but whose fault is il? Who
called these banks into existence2 The Ex-
ecutive. Who tempted and goaded them to
these issues2 Undoubtedly the Executive.
The country, five years ago. was in posses
sion Of the most beautiful machinery of cur
rency and exchanges the world ever saw
Ii consisted Of a number of State banks pro-
Iected, and, at the same time. restrained by
the Bank Of the United States.
The people Of the United States, through
their representatives, rechartered that insti-
tuition. But the Executive, discontinued with
its independence. rejected the act of Con-
gress, and the favorte topic of defamation
was, that the States would make banks, and |
these banks would create better system of
currency and exchanges The States ac-
;ordingly made banks and then followed |
idle parades about the loans Of these banks,
and their enlarged dealings of exchange
And what is the consequence? The Bank
of the United States has not ceased to exist |
more than seven months, and already the
whole currency and exchanges are running
INTO inextricable confusion, and the industry
the country is burdened with extravagani
charges on all the commercial intercourse of
he Union. And now, when these banks
nave been created by the Executive. and ur-
yed into these excuses. instead OF gentle and
gradual remedies, fierce crusade is raised
against them, the funds arc suddenly and
larshly taken from them. and they are forced
o extraordinary means Of defence against
he very power which broughtthem into be-
ng. They received, and were expected to
eceive. in payment for the Government the
totes of each other, and the notes of other
ranks, and the facility with which they did
70 was ground Of special commentator BY
he Government; and now that Government
las let loose upon them demand for specie,
0 the whole amount Of these notes l 90