Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1838-01-27
EXTRACT FROM GOV. MARCY's MES
SAGE TO THE n. Y. LEGISLATURE.

l.
warnings we're gwen of its approach, they were
not needed, and the causes that consplred pro
duce 1t were lett to operate with undmlnlsed
force. Its intensity increased with ITS progress,
and It has at length peryaded all sections Of the
country, aud all interests have felt its whitening
power.
Upon this State, containing the great CONNER
cial emporium OF the nation, the centre oil domes-
tic as well as foreign trade and Of the monetary
transactions Of the Union, II fell with crushing
weight
A restless spirit of adventure and daring enter
prise, is prominent characteristic OF the Ameri-
can people. Under It's impulse, their conduct,
for some time previous 10 our present difficulties.
tended TO oyeraction in all branches of business.
With scarcely substantial capital enough in the
country, aided by the prudent use OF credits, TO |
WELD our ordinary business concerns, greatly |
increased demand for II vas created by all kinds |
of over-uadIng, by extravagant speculatlons, and
enormous investments IN unproduclve property.
Our credit system was resorted 10 Ir this emer-
gency 70 sustain tins oyeractlon IN trade, and TO
carry on, these enterprises for the sudden acqusl-
ton ofwealth in this manner it became burden.
ed, oppressed, and was finally oyerborne.
The open credits which II is now known were
extended by certain houses in Europe to mer
chants and bankers IN this country, had power
| full and pernlcious agency in causing our present
embarrassments, The facilities thus literally
| given on the one side, and most mpiovidenty
used on the other led TO an excessive lmporla.
lion Of foreign goods, and the consequent accu.
mutation Of very large foreign debt, which the
avas OF our exports did not furnish the means OF
paying 0vertradlng at home is the almost new
table effect Of excessive lmportaIons from abroad
The same fruitful source of evils has also pro.
duced what was anticipated as blessing, but has
in fact proved to be n public caamlty-the accu-
mutation Of large surplus revenue. From 'he
organization OF The federal government down to
the present pecunlary crisis, It's funds have been
deposited in banking institutions, and IN this stu
alton have contributed to increase their ability 10
accommodate their customers. While the ma
ton owed public debt, and the surplus Of its
revenues was rigdly applied to its reduction, this
mode Of using the public money had but a slight
effect upon the ordinary currents Of business {;
but after the debt was extlngushed, the accumu-
Y latlons Of the surplus revenue were Immediately
and wholly turned INTO the channels Of trade, and
i in this manner new impulse was given TO the
prevailing tendency TO overtradlng aud reckless
n speculation. The public domain was seized or
IS with the greatest avldlty the immense sums re
III celyed at the and-ofices were poured into The ma
'e tiona treasury, and fearful energy was thereby
Z added to one of the many causes which Co-ope
at rated TO reduce the business Of the country to
deporable condition.
I'd Looking back to the period Immediately pre-
ceding the present revuIson, and carefully ex
"A. 4, Tho
ID and feelings that prevailed here and elsewhere,
e would seem that strange deluson had sprea
&c far and vide, filling ihe minds OF many with ex
\ lravagant hopes, and leading them to the wild
ID est adventures. 1t was scarcely reasonable Il
expect that this deluson would long continue, o.
o. that it could suddenly pass off without producing
IT, disastrous change IN our business transactions
m The course pursued by the general government
IN to arrest the enormous spccuailons IN the publ
" ands had doubtless some agency in acceleratnI
a. the anticipated change but to the suddennes
~ and violence with which it was brought about b
H. other causes are to be ascrlbed the calamltou
~ consequences that have attended it. The LAWS
OF pecunlary accommodations gwen to our citizen
iy IN Europe, were Unexpectedly withheld; the pay
ny ;sGal of an enormous debt due from our mer
P chants, was urgently demanded; the prices {
our staple products having declined, and the ba
ance oftrade being against US, the precious Inc
an tails were required for exportatlon This deman
re pressed heavily on the banks, and as a means q
he relief they were compelled TO reduce the amour
Of their discounts. The commelclr communit,
he thus deprived of their usual accommodation
he while yet enfeebIed in their resources by heav
m losses at the destructive fire in New York, wei
es, unable to sustain themselves and consequent
ms q more general suspension Of payments ensue
ID, than had hitherto happened in this or perhaps an
m other country.
at Notwithstanding the embanassments Of the
ST. customers, it IS probable the banks would ha'
sustained themselves in this trying emergenc
had not the difficulties in which they were involve
rid been greatly aggravated by he measures rende
TO ed necessary TO execute the deposte law. II
ue revenue collected at the port of New York,
We mounting to several millions, had been deposltt
70, in the banks Of that city, and by them loaned
10 the business community. In the midst OF III
ner unexamped pressure, these banks we've obligd
d a withdraw, for tho purposed OF distribution,
an large amount from the use TO which 1t had be-
md applied. BY this operation, the crisis was gre'
We " accelerated confidence became daily mo
av and more impaired. and was shortly suppressed
me by general dlsuust; panic cnsued, ami {
ect tended itself to bill holders and individual der
on sltors run was commenced upon the banks
be the city of New York, and they suspended pa
it is ments in specie The same causes that led
i is this catastrophe in that city had been operah
'or. elsewhere, and produced similar result throue
inst out the whole country.
life;
tear 1.-THE views have taken Of the origin Of {
ests difficulties in which the country has been invo
and ed is correct, they are in great degree altrlt
an table to the accumulation Of large surplus re
ps nue. by the United States, and the use of It
bu. the banks. 1t is the duty Of Congress to gu'
the against evils from this source, and II IS grauiy
49,. IL n-a.lIonL Of tho hi