Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1838-04-19

Banks OF the Ctty Of New lVtk, that since The
Suspension 10 March I. 1888. they have re-
ducrd their loans snd discounts from forty six
millions 10 thirty millions. aud their eireuls-
,tion from nine millions 70 two niilions--an
ayyr. gate liniiaatian of from CITY five millions
4 10 IhiIiy-three millions. n Ih,s. or auy thing
near tlis, he the reduction, what u the con-
I ssquencsi A man who contracted a debt Z"
the Bark. 10 New yoik, before the suspsn-
sion, finds his ability 10 provide means for
The payment Of that debt reduced one taird or
nearly one h9H-that j. 10 say. the dollar he
! tas pas 10 eaaifa ieht 10. o;e and half or
aimosi Ia o dollars when he borropsd Il, be-
sides he interest Such process of redue-
ton would have been wholly intolcrabie, if
the oi,IIen, had not escaped from Il and
sought alienation by loans el-e here cut
3 " the other cities had followed the example
OF New York sud made similar reductions
the whole country would have sunk under IL
or revolied sgairsi II.
J These inequalities between members &C the
same community become more striking when
applied 10 engagements between distant parts
/ of the Union. The Atlantic cities. for Instance
! we're creditors of the southern ADD Western
/ states for goods sold 20 them. 20 be paid for
either in ihose States or in the Atlantic cities
i-their currepcies being nearly tho ssne
I that the exchange would not coat much n
the mere transportation Of the specie. W hen
the DAY Of payment arrives, the creditor cAy
suddenly makes an artificial scarcity q IT.
own uTrency--rebdrrs the only money t will
receive ia oymeAt almost inaccessible 20 i,s
misunderstanding nj the same time the rates
of exchange, and the prices Of every hiIg
This rigor Instantly recoiis on the creditor. lf
payment Is made In the Southern and WcsteFn
States, the Atlantic merchant loses The whole
depreciation in the exchange. IL payment ..
10 lie made in the Atlantic cities, and tic
debtor sends produce 20 pay his debt. the scar
/ city of money obliges BAN 10 sacrifice tiff
( he sends the Bauk notes VI his country they
sick TO seserty-0ve per rent. 10 vaire-srnd
lie loses the difference lf be bTIrEs the stocks
of his State, the scarcity Of mosey renders
their negotiation impossible. Once di.ap-
roiaied in this way, he sends TO moro pro
duce-no more Bank nolcs-- and the creditors
? ~ turn suffer more than the difference By the
delay.
So IN respect to foreigners. We owe
large debt q France and England Why
should we destroy tie value Of our only mears
of paying "a We cen pay it ODiy in casi, or
produce, or sioeII A. 10 osL-tlrrs debt Eas
contracted in au abun5abi currency, b. this
artificial scarcity Of money NC are obliged 90
pay 1t IN a currency more valuable by one
half or one-ibrd. Even at that rate We can
/ neither borrow the morey nor raise IL by SslsS
. except by fuinous sacrifice We thea may
Ppy II ia produce CT in aockJ. but tho sanr
scarcity sinks The value Of both. A deb Goa
trlcted wien cotton vas 81 90 cents, We have
10 pay when cotton 10 ten cents pound. If
We prOpoSe 20 pay IN stocks, these too hAVs
sunk perhaps twenty-five per cent. on their
price last year. Our resources then are d.
minished 10 value while our dsbI i increasing
by interest. The onssGurBee D., that tie 10
reign debt is pOsiponCd. Tbia operates inju-
riousiy 20 both parties; 10 the domestic debtor
by reducing his means OF pay ment-'O the To-
reign creditor ny lhs delay ard the Hazard al
F. his debt. u u true. II be eeuil roe receive
his none he Gu ren,i, it LoRae 81 > Iou rate.
But iheh he sane sesrciy which ioseFs tue
rate Of remittance. prevents he receiving anJ
Z ihing 10 fcmI--a aud 30 faT fsoRa bsinG irts-
resie' ~ Tie tsrlJ Tssumpiion, II iTIaTss kifa
essentially, because tie foIcrj HttpsFsIiCe
for 10 by crushing the nsoVTcss OG tis de htOfs,
renders iiem alike uHalle ard LIN s.I,ug &C.
pay. What the foreign CTedtoF SsIt-. -
} payment Payment q the debt not ia bet
ter currency, but in an equal currency, OF e
necessary. IN an inferior cgsteucy. hecAusc be
can better support high rate &c remittance
than n reduced or postponed payment.
There prevails 4 notion that ths credit of
: the coubify abroad " ia be injured hy not re-
suming. Not Ia tie least Every body con
hected with America knew the ICsaons 81 sue
7 pending, and entirely approved % }, 81 the
only measure that could have saved the c0uo-
TRY. Whot Europeans Want noe -, that ws
should pay our debt That y our Rrsi duty.
and u they see, a. they cannot fsil % see. that
these premature Efforts 90 resume sPee,e psy-
meats prevent the collection % what ;, d,p@ 10
I them, they wi: perceive. that IN sndsayositG
TO secure ~ Object wholly comsstA, hsy
have been sacrificed.
In respect To the ditiJcnds and ire stocks
I payable abroad, many of them are payable 81
pounds sterling, or guI,ders, oT aares. 80 that
NC place tie money there ~ GER oNu eosi
\ and to dividend. pay zblr here. they have
I almost universally pseH tsmittFd ~ The Fqgi.
saienis TO specie Wh.t ths general merchant.
of France or England desire. is, thai We
should Ipke their merchandise. Mat ss sho,.ld
trade y gh them. Tie slate Of our tufrtnry
= very subordinsit runesfn. You e. - ~,ih
/ hem AID pay them W taeir oUn currsvcy 81
/ They know title and are isss sboat ne spft
% currency IN uhlch sou deal win the Sotlih
AID West Besides, Nho slr 60 fsgfosch Us
with tie depreciation # uGr noies. The trg-
lsLl Bot Tie Bshk % EnEisua suspended
specie payments fof twenty 1--we ysars--- 90 sFis
sil Nhirh time every AmsFicaB hank PAID
Z speris-- shd n,sn in fnsisud utfe forced h'
, iaW a. iuke ne roiss q De BaHk g EHgiifd
/ siea hes sere 81 flifty PEI cent diseonnf--
vbertas 10 man - obliged heFs 10 tshs ny
note ~ sny hank- sod - ihis moment . pc
yer doiisr in Philadelphia "a Nee fefhs wi
fuy . silver doilsf delivered b. i.ondcn. The
+ question hen e iis rcsumrtion - ore ezciu-
sivelg domssfic-- ore ahioh. houesFr irpof-
lsnt 81 home does oct sfsel The ersdh Of ths
country sbt0ad
! W we easns uov 70 ibc question = hsthsf
n ~ early ftsumpii0n be- pTaeiic able ihe
noah Of aiay is ht time. NJ impfsr-ion =
ihsi ihs H.oosh ~ Msy vtty uuhi tisns.--
The Fsssmriion. o. BE Gscfui, idhst - esnfrai
sra 20 srfsrrer,srt san hseatisfsft1fy ahirt
does not include ths sesihfrn 80 eoufh-
~ ssifrn states. These a. hoi ihitk ere go
fcsdg - resume. Thsy ere stfsiHHk etsrs
nerve % psy ftsir febis Thew crops ere 60
ice frus ard % PROVIDE innda 81 Ruaft sud a.
ne Norih--ihe Bsfhs ate iahofing % meet
.fheF notes 81 ne Nofih-.lts leeislsiufes are
ris8rine ttsR crs6n n faise fauds IN order
ihsf thew pspfis may p1y thvir sehis. WIZ
shonS 80 gFrniss hen 81 usf 0snt BE-
time FHfF hags aoi tet hs1 90 bsnfhl q q
s.rels efup. sd thsF mag require snotl 2,
80 frssrsl a faeFffiftrF Item 90 6fri itilsh-