The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1837-06-30
THE "PREsURE" AND ITS CAUSE.
FROM THE NATIONAL GAZETTE.
PUTTING THE SADDLE ON THE RIGHT
HORSE;
ITAKE THE RESPONSIBILITY"

/ he constitutional currency" papers
all over the United States, sensible Of the
misery which has been broueh, upon the
country by she unwise measures of Gener-
al Jackson, and anxious to save their party
from the consequences of the reaction Of
public opinion which must inevitably take
place, when the presumption Of their lea.
ders in needing with things they could
not comprehend shall be fully exposed, are
necessarily occupied in the endeavor TO
make Il appear that the storm which is now
raging throughout the land is soieiy to be
ascrlbeG TO speculation and over trading.-
In this sentiment il is to be regretted that
many respectable and worthy citizens of the
opposite party unite, who, without taking
the trouble to trace back the evil to lis
origtad! source, are disposed TO rest salts.
fed with mere secondary causes, and TO
flatter their selflove BY contrasting their
otcn ertrfne prudence with what they term
the wild imprudence OF others. That there
has been a great excess of speculation, an
lnordnate degree of oyer.trading and wide
spread system of credits, entirely beyond
the limits of ordinary discretion, is not TO
be disputed. But the question occurs, and
thls IS The rhOle pith Of the matter at issue,
could such state OF things have occurred
had Gen. Jackson not tried his hand at va.
rious humble efforts to restore the consti.
tuional currencyl" answer that it ras
impossible that such state Of things could
hdre occurred, and this will now undertake
10 prove.
And first, will suppose, for the sake of
illustration, the following case : The bank.
err Roihschild arrives IN this country, and
gives out his intention TO draw bills upon
Europe for forty millions OF dollars, for the
purpose Of lending out the proceeds amongst
the good people OF the United States. He
proposes to Jet Philadelphia have five mil.
hons, New York ten millions, Boston five
millions, the Southern States ten millions.
lie hnds the merchants and people OF the
United States IN the pursuit Of regular
business, the banks IN safe and easy circum-
stances, with ability TO discount all the
good real PAPER that IS offered, and private
capitalists with an abundance OF money TO
lend IN the market at SIX per cent. No
body is 10 reality in want of money for the
ordinary operations of business; when all
at once a cry is heard, :" | have millions 10
lend, who wants 10 borrow :" The novelty
Of this sound TO the people who generally
had to run after money, instead of having
money running after them, could not fail TO
set the speculative faculty at work TO find
out some mode Of employing money BY
which more than six per cen,um could be
made by II. Ii is soon ascertalned that al.
most every body is willing 10 borrow, and
Rolhschild makes his loans for an indef.
mite term, but with an understanding that
possibly be may not call them in for several
years.
Any man with half an eve can see the
immediate effect Of these loans. An army
OF SPECTATORS and dealers is at once raised
upat all the different polats where the loans
are made, with cash in hand, looking on,
for objects 10 deal IN, and blddiug against
each other. The notoretv OF tins fact at
real estate, or stocks, merchandise, or 9th.
er property, which is sought after, to raise
! their prices. Sales are made, the money
changes hands, but in the possession of its
new owners II is probably still capital
!, seeking a fresh investment. New banks
aud railroads are projected, and public
lands applied for. The prices OF every spe.
cieS OF property and commodity augment,
and, as prices rise, n universal spirit of
oNer.trading seizes upon the community,
and purchases on credit follow to a great
extent. 1t is by no means unreasonable to
suppose that loan Of forty millions made
IN this manner, might in the course of ,
years create debts IN the shape Of bonds,
mortgages, promIssory notes, bills Of ex-
change, DC. TO the extent of four hundred
millions of dollars beyond the usual ordiua.
J ~ debts OF the community. At length, MIR.
RothSchlid, all at once, and quite unexpect.
edly TO his debtors, calls for his money in
his four annual mstalmentS, for the purpose
OF lending II out again, not merely at fifty
or sixty points, bu; all over the United
States, at as many points as there are coun.
ties or townships. What think YOU, read.
err, would be the effect of this movement
Nothing short Of general ruin. The de-
mand Tor money to meet the engagements tor
the forty mlloHs Of dollars due Rothschlld
would operate upon the whole four hundred
millions, and upon all other existing con.
tracts besides. Prices would fall. Bank,
ruptc,es and the sacrifices OF property
would take place all over the country, in