Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1839-11-19
VOLUME VI.:::::::::::NUMBER 9.

, OF which is the system of creating
State debts to vast extent for the pur.
: pose of prosecuting public works.
Nearly Simultaneous with the great In
crease and accumulation of the public
revenue, there arose an extensive spirit
| for internal Improvements. This was
the signal for the creation of debts by
many of the States of the Union, in the
/ adoption of the measures for which
| party divisions were forgotten, and all
united in their advocacy. In addition,
stocks to a large amount were created
by several of States TO provide cap
ital for banking purposes. The stocks
thus brought into existence found, for
a time, ready sale abroad as an in
vestment by foreign capitalists. This
seemed 10 encourage the spirit of en-
terprise, and to augment the number
of projects calling for capital TO carry
them Out. To the encouragement thus
given to the States TO persevere in this
| policy the General Government has
been contributor as well as foreigners
and our own citizens, by the invest
ment of several millions of dollars OF
trust funds held for the aborigines In
the stocks most recently issued by
some of the newest and least populous
ofthe States. The policy of these ex-
tensive engagements and undertakings
it is not now our province to question
or TO defend. That must be tested by
the productiveness Of the improve
ments, or the burdens which they may
impose upon the States. One thing,
however, is certain, that mainly through
their fundamentally the country has
exchanged national debt at home, re-
curing five or six millions Of dollars
annually to pay the interest on it, to
State debts requiring from ten to twelve
millions of dollars annually to meet the
interest accruing on the portion held
abroad.
Nor is this all. The temptation held
out by the high wages allowed on the
numerous public works in progress at
the same time induced the day Iaborer
to quit the field of agriculture for more
profitable employment. And what has
been the consequence? The produc-
ton at home of nearly all the necessa-
ries of life has been deficient; the pri-
ces enhanced exorbitantly, and instead
OF being exporters of provisions, as
formerly, we have been importers of
them to large extent. The customs
house books will furnish the evidence
OF our having been the importers, for
our own consumption of wheat, rye,
corn, oats, barley, potatoes. and many
other articles, the produce Of foreign
laborers and their fields, during nearly
the whole of the two last years. The
connexion which this has with the sub
ject we are considering will be manifest
when the fact is stated, that all those
articles purchased from foreign farmers
have been paid for in the specie OF the
country only.
The present year has been an event.
ful one, and the signs Of the times arc
not without their forebodings of addi-
tional evils TO swell the catalogue of
those which have already occurred.
England, the centre Of the CONNER
cial world, has experienced and is now
laboring under great revulsion in her
monetary affairs. The specie in the
vaults of her National Bank has, since
the first Of the year, sunk from 91O,-
900, O9Oto93, 900, 900, Whereabouts,
the reduction in amount being, as has
been by the Chancellor of the Ex-
chequer, about the value of the bread
stuffs which that country has been OBJ
liged to procure from the Continent to
supply the deficiency in the English
crop of the last year. The value of
money has increased there from its
usual rate (about 8 per cent to 6 per
cent. per annum, and prophecies have
been sent from thence by every vessel
for the last three months, and promnI-
gated throughout this country, that the
Bank of England was on the eve of
suspending cash payments.
This state of things in England has
reacted upon this country with irresis-
table force. The credit of our States
has been completely paraIyzed; they
can no longer negotiate loans there
numerous public works hare conse-
quently been arrested in an unfinished
state, and must remain unproductive,
while the interest on the debt already
contracted abroad must be paid.
Some of our moneyed institutions,
which in hours of difficulty had furnish
ed the State with the means of dischaf-
ging their obligations to the laborefs on
the public works, on the faith Of reim-
bursting themselves from abroad, have
fodnd, from this sudden Illustration.
their active means unexpectedly dimin-
ished. Anxious 10 fulfil their legitim-
ale functions, they had In some cases
hypothecated the loan certificates of
the States with the foreign Capitalist,
and applied the money received on
them to facilitate tie operations of otir
merchants and manufacturers when the
present pressure commenced. But il