The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1838-05-11

convulson, The great restorer time 10 settle,
time to adjust accounts, time 10 send the debtors
crops TO arket, time TO dispose Of his property
with the least sacrifice time to bring out his
sources TO pay his debts.
In all the large movements of human affairs,
as in the operations Of Nature, the great Law is
genllensss-vl0lence is the last ce of weak
ness The disease Ell the country
strained and distempertd energy. The remedy
was repose.-The question the currency, though
important only secondary. The hTsi concern
to pay our debts, and especially not to depre-
clate the value OF our means OF paying them. Ac-
cordingly, II seemed 10 me that after the snspen-
sion, TIE true course Of this country was, 10 begin
gentle aud gradual diminutlon OF loans suticlent
TO prevent the hazards of expansion while the re-
strant of specie payments was removed, ard TO
prepare for he resumption but with 10 rash COM
petitsn 10 the amount which 'he efal banks
could curlail. to make no violent charges in the
standard of value and give tine Tor a settlement
wnh foreigners. and among ourselves, on he same
or nearly the same basis upon which these mutual
engagements were contracted, letting the crops
90 their destined markets without depfoci4ting
their price. After tins, the resumplion with the
aid OF Congress, wouid have been easy and spon-
taneous 1t was IN this spirit that The Bank o. The
United States has not diminished ten per cent. Of
It's oans-N hiie 1t added bout three millions its
lies tor shipping the crops of th, South and West
to the amount probably Of htieen twenty nil
lions Of dollars placicg its own confidential agent
in England to project the great cun,neroia and
I poeuniary interests Of the country. This seeued
10 be its proper function. i thus that II hoped
TO discharge its duty to the hole Union. II was
thus too 1t could show It's fidelity to Penns wa
MIA, by aiding its public mprovements-hy keep
ing Its business aud It's people in comparative
ease, and by noi suffering tie prosperity OF ils
commercial capital to be prostrated-ohjects hese
far more important than v neither specie payments
be resumed few months sooner later
I The injurious effects OF contrary are
seen in all the relations OF business. Tx, for
instance the deb;s TO banks aud Individuals The
debts were mainly contracted when the currency
abundant. They must now be paid 10 vtry
Uttered state Of the currency; and n Is Il, cessary
to uroeeed " it'll extreme caution " hen the relation
OF the debtor hi creditor is changed by events
which neither could CONTROL because, IT, this
change be not MADE very gradually, 20 as 10 bring
al thu same time oil ihe other relations of ite to
the standard, you INFECT injustice OF perhaps
ruin on he debtor. / was thus that England
continued her suspension for twynty five years.
and BY acl OF Parliament gave several years no.
lice Of the progressive resumption, Ia order that
all the business OF the country should adjust Itself
10 the approaching change o. the effect OF any
sudden asvemeEl We have before . striking
Instance. l. appears by the published statements
~ the banks OF the CITY o New York, that since
The suspension 10 Much |. 1885, they have
duced their loans aud discounts from orty.slx
millions 10 thirty millions, and their circulation
from nine To Two milons-an aggregate dimlnu-
iiun of from hti, five nons &c ihirt, three mil
lions. | this OF any thing this. be the re-
! duction, " hat is the cuns-Que nee man who
contracted debt Ia the banks in New York, be-
tore the Suspension finds his ability to provide
means for the pay wheat 81 that debt reduced one
third or nearly one-ha--ihst Is Ia say the dollar
he now pays is equivalent 10 one and halt or al
/ most two dollars when he borrowed II, besides the
interest Such process Of tduc;Ion Woul8 have
been wholly intole7sble, # the cIuzens had not
escaped frou, It aud sough, alienation bY loans
esew here. But ii the other cities had followed
the example OF New York ard made similar re-
auctions. the whole country weuld have sunk un-
der j. or revoiled against IT,
These Becuahries between members Of the
same smuniiy became more striking wher ap-
piled to engagements between dIslsnt parts of lbs
Union The Atlantic cities, tor Instance, were
creditors OF the Southern and Western ST r. Tor
goods cold TO them, to be paid for elthrr ia those
or in the Atlantic el,ies-lhcr currsncies beng
so nearly Tie same thai the exchange would not
cost as much a. the mere transportation OF ne
specie. When the day Of payment arrives, The
creditor city suddenly makes an artificial scarcity
, of its own currency, renders the only money IS
will receive in payment amos, inaccessible 10 It's
debtor. reducing, at the same time the rates OF eS-
. change and the prices Of every thing. This rig
: or instantly recolls on the creditor. J. payments
is made in the Soujhcrn aad Weste'u States, the
, Atlantic merchant losses the hole depreciation
IL the exchange. II payment is to be made IN
, the Atlau,ic cities. sud the debtor sends produce
3. hi ~ of thi
10 sacrifice it; if he serbs the bank notes of bis
country they sink TO seventy. five per cent. in va
ue and he Iases the difference; il he brings The
siecks of his State the scarcity OF msney renders
their negotiations impossible. Once disappointed
in this way he sends mere produce, no more
bank notes, aud the creditors in turn suffer more
, than the diffewnce BY the delay.
So in respect to foreigners. We owe large
debt to France and England. Why should We
destroy the value of our only means oil paving II
We can pay it only in cash, or produce, or stocks.
As to cash this debt vas contracted m on ahund-
ant currency. b, this artificial scarcity OF money
we are obliged to paw il IN currency more val
uabIe by one.half or one-third Even at that rate
, we can neither borrow The money tor IaIse II by
;, sales except hy ruiuous sacrifice. We then Mas
nav il in produce or in stocks, bn, the same
scarcity sinks the value Of both. debt contract
. ed when cotton was at twenty cents, we have tC
pay when cotton is ten cents pound, II We pro
pose to pay in stocks, these, too, have sunk per
haps twenty-five per cent on their price la, yea
Oar resources, then, are diminished in value
while eur debt il increasing hv interest. Ths
consequence :, that the foreign deb, s postponed
This operates injuriously TO both parfies-to the
domestic debtor, by reducing his mean. Of paw
ment; 10 the foreign creditor, hv the DELAY snG
the hazard Of his debt II is not true If he could
now receive his nenev, he would remit il hons
at A lov rate Rut then ths sama scarcity ~ hirh