Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-04-09


diminutoA from 6fty- five millons to thirty-three
millions. If this or any thing near this be the re-
duction, what il the consequence man who con-
racted debt TO the banks in New York, before the
SUSPENSION finds his ability to provide mems for the
payment of that debt reduced onethrd or nearly one
haif-that is to say the dollar he now pays is equva
lent to one and half almost two dollars when he
borrowed IT, besides the interest Such process OF re-
duetion would have been wholly lntolerable If the
citizens had not escaped from il and sought allevia-
ton by loans elsewhere But if the other cities had
followed the example Of New York and made similar
reductions, the whole country would have sunk under
II or revolted against il.
These ineaaIes between members of the same
community became more striking when applied 10
engagements between distant parts Of the Uulon; Inc
Atlantic cities for instance were creditors OF the SCUM
ern and Western States for goods sold 10 them 10 De
paid for either those States in the Atlantic cities
their curences being nearly the same that the ex-
change would not cost as mach as the mere Transport
taton of the specie. When the day OF payment arrives
the creditor city suddenly makes an artificial scarcity
Of it's own currency--renders the only money It
will receive in payment almost inaccessible TO its
acknowledging at the same time the rates OF ex-
change, and the prices OF every thing TINS rgor
Instantly recoils the creditor Ifpayment 10 made
in the Southern and Western States, the Atlantic
merchant loses the whole depreciation in the exchange
lfpayment is to be made in the Atlantic Cities and the
debtor sends produce TO pay his debt the scarcity OF
money oblges him TO sacrifice t-lf he sends the
Bank notes of his country, they sink TO seventy five
per cest in vaue--and he loses the difference If he
brings the stocks of his state the scarcity OF money
renders their negotiation impossible Once dlsappont
ed in this way he sends no more produce-no more
Bank notes-and the creditors in tarn suffer more
than the difference by the delay.
So in respect to foreigners We owe large debt 10
France and England. Why should we destroy the
value Of our only means of paying il? We can paylt
only in cash produce or stocks. AS to CASH TINS debt
was contracted in abundant currency BY this ar
tfcial scarcity of money we are Obliged 10 pay IN
currency more valuable by one hall or one thrd.
hat moi hpY
raise itby sales, except by runoss sacrifice we
then may pay in produce or in stocks bat the same
scarcity sinks the value of both. A debt contracted
VIXEN cotton was at twenty cents, we nave 10 pay
when Gotten is ten cents pound III we propose 10
pay in stocks, these too have sunk perhaps twenty
five per their price last year. Our resources
then are diminished in value while our debt lncreas-
ing by interest. The consequence is that the foreign
debt is postponed This opeartes nJurously 10 botn
pares-to the domestic deborb by reducing his means
Of paymentto the foreign creditor by the delay and
the hazard Of his debt. 1t is true II he could now
receive his money he would remit it home at low
rate. But then the same scarcity which lowers the
rate Of remittance prevents his receiving any thing to
remt-and so far from being interested IN the early
resumption, il Injuries him essentially, because the
forced for il by crushing the resources OF
his debtors renders them alike unable and unwilling to
pay. What the foreign creditor wants is payment
payment of the debt not in better currency, but In
equal currency, or necessary, in an nerior cur
rency because he better support high rate OF
mittance than reduced or postponed payment.
There prevails notisn that the credit OF the coun
try abroad will be injured by not resuming NOT IN
the least Every body connected with America knew
the reasons Of suspendng and entirely approved OF
as the only measure that could have saved the coun-
try. What Europeans want now is that we should
pay debt. That's our first duty and II they see,
they cannot fail 10 see that these premature efforts
10 resume specie payments prevent the collecuen OF
what is due to them, they will perceive, that iR endea-
vorng TO secure an object wholly domestic, they
have been sacrificed: In respect to the dividend and
the stock, payable abroad many Of them are payable
in pounds sterling or guilders, or francs so that we
place the money there at our own cost-and as 10 di-
vidends payable here they have almost universally
been RENTED in the equivalents to specie What the
general merchants Of France or England desire, is
that we should take their merchandize--ihat we
is very subordinate concern. You deal with them
and pay them in their own currency. They know
little and care less about the ssrt of currency in
which you deal with the south and west Besides,
who are TO reproach us with the depreciation Of our
notes. The Euglishl But the Bank of England
suspended specie payments fer twenty five years
during nearly all which time every American Bank
paid specie-and men in England were forced by law
TO take the notes of the Bank Of England when they
were at thirty per cent dscount-whereas no man is
obliged here TO take any note of any bank-and al
! this moment paper dollar in Philadelphia New
York, will buy silver dollar delivered IN London.
The question then Of the resumption 10 one exclusive
ly domestic-one which, however important at home,
does not affect the credit of the country abroad.
VI We come now 10 the question whether If an
early resumption be practicable the month Of May is
fit time. My impression is that the month of May is
very unfit time. The resumption, to be useful must be
generals and arrangement can be satisfactory which
does include the Southern and South States
These do not think are yet ready to resume. They
are sraning every nerve TO pay their debts. Their
crops going provide funds in Europe and
at the North-the banks aborng their
at the Norththe Legislatures pledging their credit
raise funds in order that their people may pay their
debts. Why should we repulse them 2 All they want
Is time. They have not yet had the benefit of a single
crop and they may require another; and instead Of
dscredtng them, diminishing the value of their pro-
duce, curtalng their facilities in sending their crops
TO market il better help them and wait till they
more nd vanced in their preparations The employment
OF credit either Of banks Of individuals useful
TO the csuntry this moment, is 10 forward its produce
to Europe IRstesd Of this the banks reducing these
facilities, and calling upon their debtors for payment
This seems very unreasonable IL 10 stopping the locs
motives AZ they carrying the crop TO market The
month Of May is not the right time Of the year.
For example IL requires, on an average about fifty
days 10 take from New Orleans TO Liverpool.
Surprising il Immediately sold, the usage is at the cad
Of ten days TO give bankers acceptance payable In
two months 80 that by the month OF May there would
not be actually realized than the which left
New Orleans before January, when than one
fourth Fifth OF the whole crep had been shipped.
Much, Of sourss, is drawn for when shipped, bat
speak OF the actual obtaining possession oihc pre-.
ceeds OF the crop and all events half Of the
crop will have reached Europe by the month Of May
he i ~ al