Madison Whig advocate. [volume] (Canton, Miss.) 1839-1841, 1839-11-30


proyefnents, relying on the enjoyment
OF the old facilities Of credit Abroad,
The extraordinary and honorable Efforts
made to discharge its debts, exalted the
character of the country; and merch-.
ants FASTENED to sell on credit, and capi-
talisfs 10 lend on the public securities of
a people who had been thus faithful to
their engagements.
1t was then that the anticipations. un-
der which the Philadelphia banks gave
their reluctant assent to the measure.
were realized. And now, after little
more than year of nominal resumption
the Southern and Southwestern States
are more embarrassed than over. The
Atlantic banks are weakened by their
iruItless endcayors 70 aid those States
the commercial debt to Europe is larger
than at the resumptIon-the debt of the
States in Europe much larger, and the
specie means of the country much d.
minished. The premature resumption
of specie payments, therefore, has left
the country in a state of exhaustion.
which has prevented its being able to
stand the new shock which forms the
more recent and direct cause of the pre-
sent suspension, and drain of specie to
England.
In our relations with England, she is
largely and habilually a creditor. Like
all other creditors, she is willing to buy
more and to lend more while her own
situation is perfectly easy--but when
she is herself pressed, she ceases to
lend. ceases to buy, and proceeds at once
to exact payment. Thus in ordinary
times she receives payment for her goods
in our own produce, or in our own funds,
and rarely requires, because she rarely
needs specie. But sudden trouble has
come upon England, which reverses the
whole of our relations. Her crops have
failed, and she is forced to protect her
people against famine by purchasing
food, and this not from our own country,
which might furnish market for our
crops, but from neighbors who can fur
nish it cheaper than we can-and as
these are comparatively small consul
mers of products, she must pay with
bank of England alone has been obliged
to furnish more than thirty-fye millions
of dollars in specie to be shipped abroad
"a drain that has threatened that Instl-
tuition with suspension. BY the latest
statement of her affairs, it appears that
with immediate demands for which she |
is liable, of es5.742,ooo, the whole
stock of specie is only f2,800,00 and
this after borrowing from the bank of
France f2,0OO, o0o-so that without this /
extraordinary aid, her position would
have been extremely critical.
The consequences is, that money has
-isen 10 twice or three times its ordinary
the staples of this country
ire unsaleable except at ruinous sacri-
ices-that the stocks of this country
ent by the States or by the banks, or by
are wholly incontrovertible,
eaving as the safest and the favorite
node of payment, the expectation of
pecie. The demand for this article is
till further increased by the efforts made
n England to produce relief at home.
The manufacturer, pressed by some
rgent want, empties his warehouse into !
he pockets, and selling his goods here
/ small sacrifice, he ships the specie,
mich reaches England in time to re- s
eve him.. leaving this country flooded {
With goods without any regard to its {
rants or its consumption. {
The result is, that the coin Of this y
ountry is wanted in England to send to I
&c continent for food; that very large {
ortion of it has gone, and that the rest !
sill probably follow. The banks of {
have already contributed {
many millions-one single bank of their i
lumber having, since the resumption in
August, 1888, paid out no less than {
$4,000 dollars, in this city alone, and !
he demand seemed to increase, instead /
# subsiding. {
Under these circumstances they have |
o adopt one of two ernatives-either :
o force the community by sacrifices of 1
is property to pay its debts to the banks,
n gold and silver, to be shipped forth {
With to England, or else TO resort TO a c
emporary suspension until the commu- :
lity as well as the banks could have I
ime 10 recover from the effects of these '
ated to prefer the latter as being the
most conducive TO the true interests of
he State; and they confidently rely that
heir motives will lie duly appreciated '
" the public authorities of the common
wealth. To that commonwealth they |.
we their existence. and they regard !
Ter prosperity as paramount considera- g
ion, to which they have always sacrific- f
d their own merely pecuniary interests. !,
very loan wanted for the service of :,
he State, every great Improvement for
he development of its resources, has al J
Ways found constant and libe raj contri- '
utor in the banks; nor is it an exagge- +,
ated estimate that four-ffths of the
unds for the internal improvements of
he State, have been contributed by the v
anks.
On the whole, the views which the '
anks of Philadelphia wish to present t
re these: s
That they were reluctantly obliged to I
mite in the resumption last year. declar- {
1eif II We're postponed for further pre- a
aration it would be general and perma- y
emf. C
That events have proved the resump-
on to have been premature, weakening 1
he banks and the country 5
That in this exhausted condition they v
ave to encounter a fresh demand for Z
pecie, to buy food for the people of v