Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-05-15
- FOR TIE ENQUIRER
u" inquiry t"to the causes IF lie present distress 0fe
6OHRirU.


IN Enquiry into tie Of Tie present distress ofte
h C0aRtry
In investigating The causes OF the cmbarrassments of
inc country they may probably be explained BY com.
patlso OF Tie circumstances preceding the pressure OF
l~l, l72O and the present period; remarkable s;miI
tudc VIII be found to exist between the period of l~lI
TO l12, and l>3l to l-i0, in OF the prominent
causes as well as the effects
1t IS fact, well known that banks are not liobl. f.
drains OF specie from them, and consequent curtanru
oil their circulation unless there is demand for snrc
Tor expectation, and any circumstances which will pre-
vent this demand will protect them from pressure and
| lead to expansion
| Al the peace in 1873 there was more than 300. O0o
OVo III certificates of the debt of the United States
| IN the hands of individuals and banks These alter
the war; were sent forward to the great money market
OF the world, London and constituted fund in addition
to The crops OF the country upon which drafts could be
drawn ne l. D Bank was chartered in l. IT, and went
INT" operation IN ISL. large amount of its stock
found It's way 10 the same market. These furnished
such fund to draft on, for all purchases Of torr,
produce or manufactures, that no one desired TO ship
specie Tor such purposes, and the foreign mcrciaut
having received payment for his goods here in Bank
notes found it more convenient to buy = dratf WIN
then than draw the specie from The Banks and take
that with him. The Banks thus protected from drain,
OF specie, expanded freely; realized large profits.
enormously increased the circulating medium of tho
country; property Of every description rose in value
frenzy OF speculation seized all classes f,reipn ana
domestic produce felt the impetus; merchandise could
be purchased IN almost part of the world and sold
here for profit The Importation of foreign merchal-
Dive IN l-l1, 10, IL L. exceeded the entire amount
Of produce exported SlG5,O00 600 The fund in En-
rope, created BY the certificates of the war deb, anil
the stock OF the Bank of the United States larnc rs /
was, became cXhaustcdsT The foreign merchant hay;.
Sold his goods Tor Bank notes, longer able TO buv 4
draft bill of exchange upon reasonable terms err
RED the notes 10 the bank, drew the specie and
shipped that. The native merchant did the same to
comply with old engagements, make new mporta-
IONS. Inc banks, from necessity were compelled TO
cnrtl to cal! III their notes IN payment of debts due
TO them, 10 prevent their presentation their counters
demanding specie. The curtal was continued until
the prices OF every article Of foreign merchandise was
so reduced, that there cssened hope of profit upon
the importation ofany article but one of NECESSITY and
until domestic produce became low as TO attract the
attention OF foreign merchants, who were induced to
send tsclr coin here to purchase. Thus in l-20-'2I
the prcG Of wheat in Richmond ranged from G2i 81
was reduced to less than S30,O00ooo The havoc aud
ruin To debtors is well remembered by those who lived
at that time. Some the nobcst spirits were bowed
the earth, some of the purcst hearts were broken.
How stands the IN l-3l, l-%, l-:I63 The State
Legislatures borrowed in Europe for their Internal In
provenIents than SlOD0 900. This formed
Their fund To draw on The Banks expanded, propcrtg
rose speculation ragged. The mporations exceeded the
expectations Of produce 81 OO0,OOO This fund.- Ike
the other, became Exhausted, specie became demand
for expectation to pay foreign merchants. The Banks,
unable to meet the demand, expanded The act OF srs
pension caused the dsusc of specie for the time
circulating medium hence the instant reduction OF the
circulating medium by the amount of specie in crcula
ton estimated at from forty to fifty millions of dol
lars The Bank note circulation of 900 has
been reduced 10 S9G,0O0,000 Thus the entire CIR
culatimg medium Of the country has been reduced
one-h half We have tins hope, that the wealth and po
puation OF the country having probably doubled since
1919 our excuses III proportion TO wealth and re-
sources are than half what they were then,
and the distress will not be prolonged great. :
Ii is true there have been other causes, but of compa
ratively tritling influence The facts stated above are
derived chiefly from the Reports of the Secretary OF the
Treasury and of themselves sufficient to account
for the present distress 4 LOOKER-ON.