The Madisonian., 1840-01-30
Tas casar oUEs rIoN OF THE DAY.

n.lsion Tie pTeseaf ertsts Stats dcoss Dsas-
trans eseets If he Sab Treasury.
lf,,,.,,ea and concluded from a. iaa Madisonia")
There are some politicians who' from moi being
.hls 10 contemplate any bat the most striking ana
n,lnable events, are really IN favor OF Pu'ing down
ali credit. They see the effect OF those monetary
rsvolsions and lnat they proceed nihsuia'ey .'""'
exteoled credit; therefore, 10 suaru asa'nS' '"ese'
,hsv would annihilAte all credit nave ue' WIN
soma who actually supported the sao-'reasuy
scheme upon this ground,
Nav although have attempted 10 snow IN ie'-
,er which has found lis way into 'he Puoi'c p'ln's'
and which, perhaps, may have mel your eye, 'ha'
,he,e is no system that can be conceved so"eh cai-
,.l,ted 10 produce commercial revuisions as 'he
snbtreasury; yet, sir, beg 10 b. INDUCED IN a lew
remarks on those artificial attempts made sometimes
by legislators TO check the spirit OF speculation.
Ia the first place would remark that il is impos-
sible, often Tor human wisdom 10 determine whe'her
the case one OF wild speculation, or OF usetul ad
venture and enterprise Thus, fora series OF years.
preceding 1887 The price OF cotton rose steadily I'M
Ill il reached average Of about 10 cents, and WIN
this rise was erected much more extended super
structure of credit. Now have no hesitation IN
saving, with such rise Of price, this superstrueture
was not only inevitable, but advantageous; and II
cotton had fixed itself permanently at that price,
aier some slight revulsons from over-tradins. his
supersruclure could perhaps, have been maintained
with great benefit 10 The country Il is we'll how
ever, that many Of the best judges Of the age were
of opinion that average OF about Is or Is cents
had become the natural price OF cotton, and II So
the country had not greatly overtraded Again, let
the statesman make the attempt 10 remedy these
things and in nine out Of ten, the snbs,itu ion
a r -. a.f.. Il, ,x.fl.. r,Ir
inevitable mischief as witness the celebrated specie
circular of General Jackson. These things had bet
Ter be efl TO the selEsustaining laws OF trade. l
have no doubt that a well managed banking system
upon proper principles, under the influence Of the
laws Of trade, might become the best possible check
on wild speculation, and the eicacious support
10 prudent enterprise. Because banks, by their more
extended rel lions, and more intimate knowledge
OF the cause Of exchange are much more likely 10
see in advance the gathering storm, and TO prepare
Tor it, by proper system of curiailmen than
isolated individuals Who does not at once, that
such men as Albert GallAtin and Nicholas Bidde,
a, the head of great b,nking institutions, are more
ap, to toreSee the coming crisis, and 10 prepare for
it, than any given number of isolated individuals,
welding in the aggregate the same amount Of capi-
tai and that such men these, should sometimes
of the banking system, but only that the best wisdom
OF man may onen err il its calculations of the fu-
ture. The fac is, our banking system is yet in an
Advancing state. IL is a development OF modern
civilization; it will require time and experience to
bring it 10 perfection. The errors of the past and
the present. form argument for lis ameioraton.
for its overthrow.
will now proceed to make few remarks on that
portion of The Presidents Message relating to our
supposed dependence on Great Britain through the
agency of the banking system. And on this point
think the Message as unfair and unsatisfactory as
on those just advered TO- In order to the right ap-
probation Of this portion of the Message /, is ne
ceSsary TO understand properly pecniarity in the
British system, which at times, Is calculated TO pro-
duce great revusions in commerce. 1t is well
kn3wn to be the policy of England to proec, the
agriculture OF that country agains, competition from
without hence the unwise and iniqutouS system Of
corn lairs BY the operation of this system in ord-
nary years, the home market is shut against the for
eign producer: in extraordinary years, when the
prices range 10 certain height it is thrown open.
N,w, sir, this system is most singularly well fitted to
produce commercial revulsions, for in ordinary
years. the home production Of bread sufs is ade-
quate TO the home demand. 1t is well known that
trade between nations, settles itself down TO the
dition OF ordinary, and not extraordinary years;
consequently, the imports and exports Of Great Bri-
tain according to a well known law of commerce.
will generally balance each other in the former, but
not in the latter periods. The effect of this is that
in the extraordinary year, there is sudden balance
created against England, 10 the whole amount of the
value OF imported bread stuff. This produces turn
in the exchange with surrounding nations, and a
consequent demand on England for specie; this, of
course, in turn produces increased run upon the
Bank OF England, and forces upon her system Of
rgd curtailment as long il LASTS as the Bank OF
England contracts much the whole system of
country banks, AID with this general and simulta-
reous contraction of the banking system, must ne
ctssarily commence the contraction and partial de-
srurtion of the superstructure Of private credit
The whole contraction operates a simultaneous re-
dnclion of prices Throughout; the country and con-
seqpenly checks the purchase of exports, whilst it
stimulates the sale of exports and thus the evil OF
Shon crop is remedied Bv the help of these sim
pie views in relation the English trade, and those
that have been before presented in relation to our
own, think we may easily perceive the injustice of
thai portion of the Message relating TO ou. depen-
dence on Great Britain.
IN The first place, sir, is it not evident that this
dependence flows from the TACT that we are each to
~ o'ner ms Dest customer. England is the great
market for our great staple. Well them may we
watch with deep solcitude, the arrival of the news
~ The Atlantic steamers. Well may we feel anxi-
cls abou that market which directly animates and
vi9ites the enterprise and Industry of one ethrd of
our population.
But, il seems, afraid of the rise in
the price OF bread stufs in England, event which
formerly announced the highest degrSe of prosper-
" 10 the farmer; and II is hinted, THAI the Bank Of
England, together with our own banking system, has