Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1838-04-27


change. OF the effect of any sudden move
ment. we have before us striking instance.
1t appears by the published statements OF the
Banks OF the city of New York, that since
the suspension to March /, 1888, they have
reduced their loans ind discounts from for
ty.six millions TO thirty millions, and their
circulation from nine millions TO two mil
lions--an aggregate diminu,on from fifty.
five millions TO thrty-three millions. II
this, or any thing near this, be the reduction
what is the consequence ? A man who
contracted debt 10 the Banks in New York,
before the suspension, finds his ability 10
provide means for the payment OF that debt
reduced one.lhird or nearly one hali--that
is to say, the dollar he now pays is equiva-
lent to one and half or almost two dollars
when he borrowed it, besides the interest
Such a process of reduction would have been
wholly inlolrrable, ifthe citizens had not cs-
capped from it and sought allevinton by loans
elsewhere. But il the other cities had fol-
lowed the example Of New York and made
similar reductions, the whole country would
have sunk under II or revolled against il.
These inequalities between members Of
the same community became more striking
when applied 10 engagements between dis
tant parts of the Union. The Atlantic cities
for instance were creditors Of the Southern
and Western States for goods sold 10 them.
and to be lad for either in those States, or
in the Atlantic clies-their currencies be-
ing so nearly the same that the exchange
would not cost ms much aus the mere trans
portation of the specie. When the day OF
payment arrives the city creditor suddenly
makes an artificial scarcity Of its own cur
rency-renders the only money it will re-
ceive 10 payment almost inaccessible TO its
debtor-reduc at the same time the rates
of exchange. and the prices of every thing.
The rigor instantly recois on the creditor.
If payment in the Southern and Western
States, the Atlantic mere hant loses the " hole
depreciation in the exchanged payment is
TO be made in the Atlantic cities, and the
debtor sends produce to pay his debt the
scarcity of money obliges him to sacrifice ii
If he sends the Bank notes of his country
they sink 10 seventy-fve per cent. in value
and he loses the difference. IL he brings
the stocks of his Stnte, the scarcity OF money
renders their negotiation impossible. Once
disappointed in this way, he sends no more
producc--.no more Bank noles-ond the
creditors in turn suffer more than the differ
euCe Dy Tue ut"y.
SO in respect TO foreigners. We owe a
large debt to France and England. Why
should we destroy the value Of our only
means of paying it? We can pay il only in
cash. or produce. or stocks. AS to CASH
this debt was contracted in an abundant cur
rency. BY this artificial scarcity of money
we are Obliged to pay it in currency more
valuable by one half or one third. Even AT
this rate we can neither borrow the money
nor raise it by sales except by ruinous sac
riGce. Weth may pay II in PRODUCE or
in STOCKS, but the same scarcity sinks the
value OF both A debt contracted when cot
ton was at twenty cents we have to pay
when CO ton i, at Ten cents pound. II we
propose 10 IA; in stocks, these loo have sunk
pr1aps twenty-five per cent. on their price
last year. Our resources then are diminish
ed in value while our debt is increasing ty
interest. The consequence is that the for
eign debt is postponed. This operates inju-
rlonsly to both paIlleS-to the domestic debt
or by reducing his means of payment-to the
foreign creditor y the delay and the hazard
Of his debt 1t is true if he could now ie.
ceive his money he wonId remit it home at
a low rate But then the same scarcity
which lowers the rate OF remittance, prevents
his receiving any thing to remil--and so
far from being interested in the early resump.
ton, it Injuries him essentially. because the
forced preparation for it by crushing the re-
sources 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
an equal currency. or il necessary, in an 10.
ferior currency, because he can better sup.
port high rate of remittance than a reduc-
ed or postponed payment.
There prevails notion that the credit OF
the country abroad will be injured by not
resnming. Not in the least Every body
connected with America knew the reasons
OF suspending and entirely approved of it as
the only measure that could have saved the
country. What Europeans want now is
that we should pay our debt That is our
first duty, and if they see, as they cannot fail
TO see, that these premature efforts to resume
specie payments prevent the collection Of
what is due TO them, they will perceive, that
IN endeavoring TO secure an object wholly
domestic, they have been sacrificed In re-
spect to the dividends and the stock, paya-
BILE abroad, many Of them are payable in
pounds sterling, or gulders, or francs, so
that we place the money there at our own
cost--and as to dividends payable here, they
have almost universally been remtled in the
equivalent to specie. What the general
merchants Of France and England desire is,
that we should take their merchandize--that
we should trade with them. The state of four