Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-10-26

winch lhsy traffic. While the stock iobbers and
>rcea.l.15s s. i,aou, dollar in their p0ckr's can
- nom tins country to Eng.and a. fam Ea.iaui
90 Flscf lul bnucW, say ten muiig,S 81 d1isrs.
they csr immediately effect he exchanges be-
tween A'ieo countries aad CanstQ leuiy the
?,.a,- of lmds. Suppose ten merchants IN ,hs
country - De Indebted % the merchants On Bag
land t.B millions of dollars when The exchange
3, az tae specie shipping p2lnt say no IA
They possess cotton 10 pay thor debts IA Ing.
lard bot la.i after II arrives IN England Il -
found tia, Nr. Nicholas B,ddle vho had no us
tsu>,o.c means. bad borrowed lUm,.hous IN Eng
land on ,be bonds Of the L. States Bank. The
immediate effect of this operation would be to alb
soIo - much Of the floating capital und produce
corresponding decline N toe price OF cotton OF
those staple stucles which vera IN demand IN The
English market, THIS falling Of 81 prices would
De 50 mach lost to The ten An,erlcan merchants,
ButAhcr lass IA consequence o, tbs operation
would no, end with the depreciation Ia the rtice
of cotton; 1t would extend 10 their purchases for
the return cargo Mr. Biddle who sold his Raak
bonds, the post notes Of his Bank OF the bcnls Of
the State OF Mississippi ,all Of which were made
tor the beneh, ot a few spectators 10 the a
mount of ten millions IA the London Market
would Immediately commence drawing on the
proceeds, and Instead OF TO ! , he would sell
exchange at los =; uud thus by atl0fdnE tx
icnsWc facilities founded on credit solely, and en-
tte'y independent Of the laws Of trade and the
natural productions Of these two countries, he
would increase the demand Tor British goods and
81 course raise their prices Hence The ten
AMERICAN merchants who traded on sound basis
suffered double loss BY the operation OF tbs
Wing credit system fust, by the decline m the
price OF cotton shipped to England, aud second,
by the advanced puces Of British goods for the
return cargo. The Same bad effects viii result
to the mercantile interest m Europe # France
should accommodate, as We believe rho has, The
stock obbcrs Of Threajneedlo street, with ten
millions Of dollars Rurnous fluctuations in
trade, and The puce Of property and labor must
G'HNrs iuioW when Bankers regulate exchanges
aud the amount Of the circulating medium. The
only proper basis Of exchange Is the production
OF county, and ~ the merchants are the prop.
e. agent, Tor exchanging these proJucuons We
ought to look Ia lhcu Jar the puce ol exchange
Trade and exchange beng tina, lef 20 the opera
hon OF nuil0uai causes, bankers aud spectators
com. no longer affect either by tler bonds, post
notes. kit,, ard other devices TO rob l.bor, aud
skin and intellect aid mercantile industry Of lhe
iusi fruits of Their tou,,
Dear bought experience Is beginning 10 open
the eyes o. the merchants to tie beou'Ies ct tho
credit system as the wings call the I+sne OF BANK
paper. The prcsdeN oftho L. States ba'k
kept up The bubble b, the issue OF post no'eS ana
The flying Of kites as long as ct"er could ra',c Tue
wind On change IN London. Bot k'es ana posi-
notes wd not last taroycr, and iinung -" We
could no longer pay one debt by mourning anolh-
or IN Europe, the president Of the United SN,eh
Bank has rcsortcd to The last desperate eSpedcni.
He has issued millions Of post notes, and by |
means Of agent, has sold them At discount
ranging from Is to 81 per cent. per nnnum in
Boston. New York, Philadelphia, aud Baltimore
There is no doubt bit ho has sent them 10 every
shirt "a il- y S,aa..l, where there was any sur
Plus capital. The Bank prctends that u has 's-
sued these notes lof the prolcctIDG Of ndgen!
merchants; but when merchant has obtained
1000 dollars the Bank has sold half million on
hef own account, and transmitted the specie 10
England TO bolster up her lotterng credit The
effort nf tho .ala - r.~. ..4,-~ has hao" nnJ
still is severely rcl, by The merchants. The float.
ing capital on which they depended for lheir usu
al accommodations has thus suddenly been ab
sorbed al the great commercial points, and they
are compelled to mako tolrJus aacrIiiccs To sus
tain lhelr credit aud c0riF IN 'hcIr business. !
Will mention another trtnset'ic which mist show /
the desperate condition Of the t. States Bank. |
Some time ago she took a loan OF one million Of
Illinois bonds rayablcin ten monthly iuslamcnis
of loo,0c0 dollars q. THIS loan was made
on the condition that illinois would not draw fni
the amount monthly, but send an agent and take
the money N $40 I, S. Bank notes. BY This
scheme Illinois was not only deHyed Of per
cent the rate Of ex hange AT the time; but the |
Bank anticipated that ITS notes would tcrain n /
Illinois and form the clrcululug medium Of the |
Sae, ns'as our NIcksburg hnancicrs lencied |
they could make circulating medium lor Texas I
when our nsolyent Bank purchased the Texan /
bonds. Had Il mol been for the issue Of post /
notes tic L. States Bank would have been com
PEELED 10 suspend before this, but when The catas.
'rophe comes It vii be ouly the more severe.
When these Banks that have been largely en2ag.
cd IN stock cotton and flour specuiallons, again
suspend, It wlII be found that they have sunk their
capitals. Wilde Their officers have built palaces
and auassed prnsely fortunes. So much for
the beauties aud benefits Of the Banking aad
credit system.
TO A BANK NOTE
| will not take ihee, raggedelf