The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-09-18
rue MONETARY REACTION.

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THE MONETARY REACTION.
We are among those who regard the reac-
,ioo that has occurred in the English money
,n,,ket as q fortunate event for this country;
indeed, Il would have been much more so,
had il taken place some years sooner
The country has already virtual mortgage
mon !, 10 the extent Of ten or twelve million
dollars, which it has annually to pay for the
interest on the debt now owing abroad.
We are the sturdy adyocatesof the credit
svstem as well as Of borrowing all the CAPT
tai Of foreigners that can be proftably en-
Moved. Bat have we not already gone be-
yond that point We believe we have. We
believe that much Of the capital for which We
are now indebted, and for which we are pay
inc interest to foreigners, does not produce
revenue equal to that interest, and therefore
il is both loss and an injury to the country.
What we now owe is not a moiety Of what
we should have owed in few years, had we
continued as we have been going on for some
time past. Look at the various works Of in
ternal Improvement; our railroads, canals, &c.
how many Of the whole number produce the
interest on the cost We apprehend but few,
although passing through or connecting with
old and populous commercial cities and
towns. Notwithstanding this, we see that it
was in contemplation to unite the western wa
tiers with those Of the Atlantic at more than
one point by canals and railroads, distance
: Of some hundred miles, and also to traverse
in many directions some Of our new States by
the same mode Of communication. And
where was the money to be procured, and on
what security, to carry through oil these gi-
santic undertakings? We answer, from
abroad and on the faith Of the various State
govenments Thus, in effect, would the
whole country have become, through the acts
Of the States, eventually mortgaged to TO
rigners, for capital which would have been
planted where il would be comparatively I'M
productive.
The history Of the past year shows that,
when railroads or canals were authorized 10
be made, an iron mine, coal mine, or a cop
per mine to be worked, commissioners or
agents were despatched to Europe forthwith,
to procure the means for prosecuting the
same, and in many instances to negotiate
State bonds for banking purposes. The last
packets have brought. back number Of such
agents from unsuccessful missions, owing to
the reaction in the European money markets;
which, we repeat, we regard as fortunate for
the country. Had we not been thus arrest
ed in our thoughtless, if not mad career, the
time is not far distant when it would have
required large portion Of the proceeds Of
our great staple (cotton) to have paid the in
terest on the foreign debt we should have
contracted
We believe it will be far better to the ma.
ton, to abandon three fourths of the works of
Internal Improvements now commenced, and
sacrifice for the present, the sums already
expended, than to endeavor to push them to
completion. The prices give evidence that
we have already too many stocks, and that
the market is weighed down with them. In
this, we suspect, will be found the true cause
oImuch of our present distress. Let the at
cntion of the country be directed more to
ae pursuits Of agriculture, to raising more
wheat corn, rye, cattle and pork, and even
more cotton Ia certain high dignitary who
thinks we raise too much Of the latter alrea-
dy''o the contrary Notwithstanding and we
oe"eve 1t will require but few years for the
country to recuperate its energies and exhi-
D." state of general prosperity.
We have hastily thrown toget her these
views that the subject may be brought up for
discussion, and may advert 10 it again.
Y