Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1839-10-24

which had been given to enterprise, and
which had produced spirit Of improvdent
specuIation, had led TO an excess Of foreign
imports beyond our exports IN the year 1855
of s2l, ,2O2, l65. and in 1885, of S6l ,3I6,995,
making an aggregate Of excess OF imports
over the exports IN two years OF Se9,5I9, l6O
This created a direct demand OIL the metallic
medium OF the country, and draft on the
vaults of the banks. In their operation these
difficulties became so oppressive on the coun
try, its business and the hanks, that the latter
sought to give relief by n suspension Of spe-
Gle payments in May, 1897, which was near
~ simultaneous throughout the Union, with
out any preconcert Of action whatever.
We now pass over the interregnum between
the suspension and resumption Of specie pay
ments, which took place generally, in August
1888. That period, it is well known, most oi
the banks in Philadelphia believed at the time
10 be too early to undertake a successful re
sumption with benefit TO the country. Events
have confirmed the Justice Of that view. But
public opinion seemed strongly in favor OF The
measure, and the banks acquiesced IN u.
though but i'll prepared, aud indebted IN
large balances To other places which had ac-
cuinulsted during the period OF suspension,
and were subject 10 be called for on the in
slant, and were so called for to large amount
on the very day of resumption in specie.
Intimately connected with the subject
which has called for this exposition, are
others, the most prominent Of which is the
system of creating state debts to vast ex
tent, for the purpose OF prosecuting pnoll'
works. Nenrly simultaneously with th'
great increase and accumulation ofthe public
NJ
internal improvement.
This was the signal for the creation o.
debts BY many Of the states of the Union. IN
the adoption of the measures for which party
divisions were forgotten, and oil united III
their advocacy. in addition, stocks to large
amount were created by several Of The states
to provide capital for banking purposes. The
stocks thus brought into existence found, foi
u time, a ready sale abroad, as an Investmen,
by foreign capitalists. This seemed to en-
courage the spirit Of enterprise, and to aug
ment the number projects calling tor capital
10 carry them out. To the encouragement,
thus given to the states to perscvere in ths
policy the General Government has been 0
contributor, as well as foreigners and our own
citizens, BY the investment of several millions
Of dollars Of trust funds held for the aborigi
mes, in the stocks most recently issued by
some Of the newest and least populQus Of th'
states.
The policy Of these extensive engagements
and undertakings, il is not now our province
to question or 10 defend. That must b.
tested by the prodnctiveDess OF the improve
ments, or the burthens which they may i'm.
pose upon the states. One thing. however,
IL certain, tina, mainly through their instru'
mentality the country has exchanged ma
tional debt ut home, requiring five or six
millions Of dollars annually to pay the inter
est on it, 10 state debts, requiing from ten
10 twelve millions Of dollars annually to meet
the interest accruiDg 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 -laborer TO quit the field OF
agriculture for more profitable employment
And what has been the consequence The
production at home Of nearly all the neces
saries Of life has been deficient; the prices
enhanced exorbitantly, and instead Of being
exporters Of provisions, as formerly, we have
been importers of them to large extent
The Custom House books will furnish the
evidence of our having been the importers
for our own consumption, of wheat, rye, corn
Outs, UdTIty, pOtdtUts, iluuy OtutI
cles, the produce Of foreign laborers anC
their fields, during nearly the whole Of tn,
last two years. The connection which this
has with the subject 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 coun.
try only.
The present year has been an eventful
one, and the sigus Of the times arc not with
out their forebodngs Of additional evils t.
swell the catalogue Of those which have
already occurred.
England, the centre of the commercial
world, has experienced, and is now laboring
under, great revuIsion in her monetary at
fairs. The specie in the vaults Of her ma.
tional bank has, since the first OF the year.
sunk from fI0,000,000, to 100000 OF
thereaboui, the reduction in amount being. a.
has been stated by the Chancellor Of the
Exchequer, about the value Of the bread
stuffs which that country has been obliged
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 three per
cent? to six per cent per annun,, and prophe
cies have been sent from thence by every
vessel for the last three months, and promul-
gated throughout this country, that the Bank
Of England was on The eve of suspendng casl
payments.
This state Of things in England has reacted
upon this country with irresistible force
The credit Of our states has been completely
paralyzcd; they can no longer negotiate
loans there numerous public works nave
consequently 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 monied institutions, which in
hours of difficulty bad furnished the state
with the means of discharging their obliga'
tions to the aborers on the public works, OIL
the faith of reimbursing themselves from
abroad, have found, from this sudden frustra
ton, their active means Unexpectedly DUNN
ished. Anxious TO fulfil their Legitimate
functions, they had in some cases by hypoth.
ccsied the loaned certificates Of the state
with the foreign capitalist, and applied the
money received on them 10 facilitate the op-
erations Of our merchants and manulac,u urers.
when the present pressure commenced. But
it has gone on increasing in both hemlspheres,
and u tead of. sales being effected of the
stock hypothecated, the institutions have beer
called upon to refund the money borrowed.
or Ia witness q degradation Of credit which