Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1837-01-17

other commercial clLIeS 10 PlA0N
the Western States; not circulated,
not used. but held as a defence against
against the Treasury, and while the
west cannot use it, the east is suffering
for the want of it. The result IS, that
that the commercial intercourse pc
tween the west and the Atlantic, is al
most wholly suspended, ana the ie"
onerations which are made are burden
ed with the most extravagant expense.
In November. 1886, the interest OF mo-
new has risen to twenty-four per cent;
merchants are struggling tor preserve
their credit by ruinous sacrifices; and
it costs five or six times as much to-
transmit funds from the West and
South west, as it did in November,
1885. or "a. or 80. Thus while the
exchanges with all the world are incur
favor, while Europe is alarmed, and
the Bank of England itself uneasy at
the quantity of specie we possess, we
are suffering, because, from mere ms
management, 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, it is said that the country has
ovcrtraded, and the banks have over
traded, that the purchasers Of public
lands have been very extravagant. !
amnot struck with the truth or the pro-
priety Of these complaints. The
phrase Of overtrading is very conven-
lent, 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 rcctified by an ex-
portation Of specie or stocks in the first
lnstance-and then byreducingthe i'm
ports to the exports. Now the fact is,
that at this moment. the exchanges are
all in favor Of this country-that is,
YOU can buy bill of exchange on a
foreign country cheaper than you can
send specie TO the country. Accord
ingly: much spccIe has come in-none
goes out-this, too, at a moment when
the exchange for the last crop is ex-
haustcd, 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.-IIow, then, has
10 country overtraded? Exchange
WIN o@the world is in favor of New
hoTk, How then can New York be
on ovcrtrader? Her merchants have
sold goods to tie merchants of the in.
terror who are willing to paw. ann
under ordinary. circumstances, able tc
pay, but by the mere fault of the gov
crnmcnt, is obvious as if an earthGTake
had swallowed them up, their debtor:
are disabled from making immediate
payment. 1t is not that the Atlantic
merchants have sold too many goods
but that the government prevents then
rcceNlngPayment for any. Moreover
III the commercial cities, money can be
had, though at cxtravagant rates. for
capitalists adj. to the ordinary charges
Tor the use of it, a high insurance
against the loss Of it. 1t IS not then so
much that money is to be procured, as
that doubt and alarm increase the
hazards Of lending it.
Then as to the banks. It is quite
probable that many Of the banks have
extended their issues-but whose faul
Is 1t! Who called these banks into ex
istence? The Executive. Who tempt
ed them and guarded them to their is
suesl Undoubtedly the Executive
The country five years ago, was in DOS
session of the most beautiful MACHINERY
OF currency and exchanges the worlc
ever saw. 1t consisted of a number O
state banks protected, and at the same
time, restrained, by the Bank of tn,
United States.
The people of the United States thro
their representatives, reCharter that in
stltutlon. But the executive, discon
tent with its independence, reiecte,
the act of Congress, and the topic 0
defamation was, that the States woulc
make banks, and these banks coult
create better system of currency ant
exchanges. The States accordingl,
made banks; and then followed idl
Parades about the loans of these banks
and the enlarged dealings in exchange
And what is the consequence Tn
Bank of the United States has no
ceased to exist more than seven month
and already the whole currency an
exchanges are running into inextrica
bic confusion, and the industry of tn
country IS burdened with extravagar
charges on all the commercial intel
course of the Union. And now. wbe
these banks have been created bv tn
executive, and urged into these exces.
es, instead Of gentle and gradual RENE
dies, fierce crusade is raised aeains
them, the funds are harshly and sue
denly taken from them, and they ar
forced to extraordinary means of dc
fence against the very power whic
brought them into beina.-Thev r.
celved, and were expected to receive
IN payment for the Governments III
notes of each other, and the notes Z
the facility with which they did So wa
ground Of special commentator s
the Government; and now fhat CO..
nd