Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1837-11-02


hal too much reason helie,e the Tact thai the ft-
caI a,sc.es ofA merican IMPORTS ccltscd ituu Toto
40 per cent between July, 1886, ard Apfd is'.s -
lie bfliesed them hid hsi arr eNpatS the inll
amount of profit and perhaps n'orc; and tint the
gross anonni of balance mish SAFELY be estimated as
n foreign debt against us ur lie year ls36 alone
Mr. X. then proceeded 10 show fic amount ol mo-
ucv we had borrowed in Europe in The space Of Que
wear enlin. in the tall II 1876. As Europe owed us
nothing on an exchange OF commedlcs. oi tohfs,
the amount OF specie lle,oud that included n ,ie
s,a,cp,ent of in1,ofs) VIII, We nhained ifo them
mus have been obtained credit, N sosne form or
other was Impossible to ceta ANY thing lihe eot-
rect official Information on thus suhlcc "A thcie was
no ty or p,onnniou either exports OF imports oi
specie there was but Lutte attention paid To a Gus
tom, houses either in Euraps OF Amerita. Large
bankers, whose business gives tlem an interest, a.
wells as Knowledge Of loaas and specie shpmcnS."rre
the only class from which much information could be
obtancd and the, rarely knca ai any except large
and notorious transactions. statement made b.
Mr. Fayoti OF pars. OF great research and ma
nv opportunities. he believed a nncho be reeo ON
MS any other. This statement was made IN the latter
part (if he mistook uo o 1885, aud purporled TO br
an estimate of the specie shipped from Eofopt to \
mcrica during the earpreceding the statement his
Statement, Mr.. H. read, rs follows;
Statement from Frederick Fayoit's essay. published
in Paris ia ls3G, of The amour, of specie shipped
6onl Europe 10 America Ia one ycai previous 10
the date OF iheessav.
say fG,oii,6GG
Holland, two loans, forming together
Gle. l,250 1000
Ia France, the ndennil, ie,000,olo;r
and Hottingurf loan l4,0o0,oo0, To-
gcther 3J3,5''3
SSH $50
II the above statement be correct, land !, Was GER
tainly more likely to be under than over The true "
mount,) we had imported near forty millions OF dol.
lars in one year. besides the indemnity, winch, II the
laws of trade had been allowed Tee operation
would have been proiitlbis drawn Tor than M
ported Adding the above sum 10 The commercial
balance OF GO 600 COO aud We had evidence of about
100 900 900, less only the specie included IN imports.
Ia addition To tins, 1t was wei known, lie sad. thai
we had been issuing credits TO eyeator on less ex
tent ever since the commencement al lS3i and th'
entire foreign debt might be saie. put down NJ much
more than : 100 900 600 IN March last The debt be-
ing established, il follows that the state o uuf To-
reign exchanges have been false and dclusWr, and
having been effected by the use OF credit. have been
no indication ofthe true balance oi trade an = Ian
exchange Of commodities; credit having the same
effect the exchanges IS the cNporaon oi M eqnal
value in commodities. Nh. X. however. concluded
this branch OF lho subject by adding that II would not
be necessary To paw the whole cb before changes
would be equali1cd avery large portion ot II hd,-
ing assumed the form al Investments, on which We
should only have 10 pay the interest aud moreover,
thc nature OF the commerce between the Two cnun-
tries will bear very considerable iorcisndebt against
us, without affecting the exchanges.
Mr. X. said thai lac hoped lie had proved lnthe SIT
s.aciion Of the Senate that The causes ol the present
distress were not common To other commercial ,onn-
tries, which, III fact had suffered only by thcir con
ncxion with US Thuy had not over traded, over=i.
sued nor had any speculative rise IN priccs similar
TO our own. The causes, then, must be located in
our own country: aad Nh. X said hc would cndeavor
explain when, how, aud by What agency they Org
mated here.
He then went back To the removal of The dcpostcs
in 1533-a measure thai hca had frequently spoken
of before As having been productive OF much ms
chei, and couuIcrbanneng good. lie had hflet-
w noticed ITS agency III MiugIug the country milo Its
then present condition 1t the last Session aud eseft
prediction then male had become true, and each
cause had operated IN the manner thete stated, SO
far rs they had been slntc developed. He would
only say ut II What all admllled--lhat IT pIodu
ccd panic winch greatly deprecated every aitlclc
OF home consumption IA the Latter part at S33 aud
part OF o3i whilst the price OF sur exports not
affected by the measure IN the foreign market,
The immediate effect rise IN foreign cA-
changes, aud twelve fourteen millions Of specie
poured IN upon u.s. This effect was not anticipated
by the President, as we could SEE b, exposition OF
his views when the measure MS adopted lie had
no more idea of bringing specie, than he had of
bringing London Ia America by the temoyal OF the
dcposi,es. lei the friend, of illr measure unlc-
diately boosted OF II, Dt the happy results of
that wise measure, from Which many and count
less blessings TO flow III upon the country.
Well. sir, the currency was already inll II not
redundant aud that tins specie. thus suddenly
forced in upon Us, by yioyutly striking down the Va
Tue of home consumption, would diSEi0cc an equal
amount of paper circulating in GOOD credit. ono
of those strange experimental aolions b, which poo
pie unacquan cd with ihr uh jet have been cludcd,
and our finances ruined. Paper must frf be cxpel-
led, and then specie viii MI the vacuum, b, law al
currency. Expulsion mlu,t prersat innot. under
such circunstane, be expected To Gtoie the intro
ducton of specie winch, instead of expecting paper.
will be- the basis oflurther issues by banks, If
they be left uncontrolled by ANY restricting orregua-
ting power Accordingly, much OF this specie went
into banks, was collected together in the torna-
ton ofnew banks, the whole continuing to expand,
and produce speculative rise IN prices which, by n
rcciprocating operation, produced sull iartlter OK
pausisns, by a well-known law ni finance. This, OF
couUe, produced speculation Al home and hcay- I'M
portations from abroad, whiJ AT last even extended
to the necessaries Of life Our people being intaxi-
Gated by this delusive prosperity, every species al
properly was embraced IN the wide range al spccua-
tioH, which speedily reached the public lands. Ey.
cry seemed 10 think il much casic- 10 get rich b,
Specializing in land than by cultivatn,g it and b,
large land sales, added TO heavy iaporaiious, soor
produced enormous surplus in the Treasury
which distributed in great number OF banks
There was great anxiety to recommend State de-
positorlcs to the People, aud reconcile them The
loss OF the United States Bank, by proving that in
siitution TO be unnecessary, and accordingly the,
were stimulated 10 accommodate the community b,
the use OF the public funds. Ia this way banks wer,
multiplied, paper ISSUES multiplied, Spccul;.
tons stimulated, aHd produced thai bloated an,
diseased condition wich be gan to manifest itself IL
the summer oil 1886.
Le it,t t,,,