Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1840-02-20
POLITICAL.
TUE GREAT QUESTIONS OF TUE DAY.

-'t'Hf"t "te#PtS 70 eHtc6 speculation. f0tiacH Of
Tie Presidents message touching our commercial
! dependence on Great Britain. Cause Of he last
rer"tsioa The present cris,. Statc debts. DIS
astrous effects efhe Sab Treasury.
There are some politicians who from no, being a.
! BILE TO con emrlte any hut the most striking and
ralpable events really in favor of putting down
all credit. They see the effect of those monetary
fesnlslons, and that they proceed immediately from
extended credit hcretreto guard against hese they
would anuhate all credit. have met with some
who actually supported the Sub Treasury scheme
upon this ground.
Now. although have attempted to show in a let.
ter, which has found lis Wi, into the public prints,
and winch, perhaps, may have met your eve, that
there Is no system that can be conceived so well
calculated 10 produce commercial rcyulson as
the Sub Treasury yet, sir. beg TO be nhulprd in
"A few re- aks those nrIfcial attempts made
sometimes by legislators check the spii of spec.
ulaiion
In the Gfsi place, would remark, HAT it is impos
sble, often, tut haman wisdom L. determine neither
;he case is Que Of Wild speculation, OF useful ad-
venture aud enterprise. Thus, Tor series OF years
preceding 1897, the prce al cotton rose steadily I'M
III !, reached an average Of aboui Secnls, and with
ihis rise was erected Il much more extended super
Structure of credit. Now have no hesitation in
saying, with such OF price, tins supersttuetuie
WAS mol only inevitable, but advantageous; aud If
cotton had liked itself permanently at that price al.
ter some slight fevulsions from over-ua,linc tins
supersucfute could. perhaps. have been maintained
with erea benefit TO the country. 1t is well, how
ever, that many OF the best Judges of the age cie
oil opinIon thal an average OF about 10 or IS cents
hal become the natural ptec of cotton aud # So the
country had not greatly over-tfaded. Again. let the
statesman make the attempt TO remedy these things
and Ia nine out OF ten the substitution OF hu
man wisdom for he laws OF trade will produce new
table mischief, as witness the celebrated specie cir.
cnlar al General Jackson. These things had better
be LETT TO the sell llws oI trade | bu,.
10 doubt, that well managed banking system upon
proper principles, under the Influence OF the laws of
trade, m,eh become tic best possible check on wild
speculation, and the most efiicaeious support TO pru-
dent eutc PRISE. because banks by then more ex-
tended relations, and none intimate knowledge of
the can>e OF eXeh1uge, are much more likely 10 see
N advance The gathering storm aud prepare 10, it,
by proper system Of curallment than isolated in
dlvldnals. W no does n1t see al once, that such
men as Albert G1ilatln aud nicholas BIdle at the
head II great banking / stutIoBs, are more apt to
ioresee the coming crisis, aud prepare for it lhan
any gwen number Of isolated Individuals welding
III the aggregate, the same amount oil capital aud
that such men these, should sometimes most sig
nally iall does not prove the woIhessness Of the
banking system bat only that the best wisdom Of man
may often err mrs calculations of The future The
lei is, our banking system is yet in an advancing
Stale, lt!Sa development of modem civil cation
II wl'lifqnife line aud experience TO bring i, To
perfection The errors Of the past aud the present
ioilH an lof lis OtdtlOn, tuf
overthrow.
] viii uow proceed TO make few remarks on thai
portion oilhe Presidents Message relating 10 our
snpposf d dependence on Great Britain. through the
agency OF the banking system. And on this point |
think the Message unfair aud Unsatisfactory rs on
those nsr advcrted to- la oder 10 the right appre-
citation Of this portion Of tie Message i, is necessary
10 understand pro- ely peculiarly IN the BRUSH
system, which al times is calculated 10 produce
great fe'uIsions ~ commerce. II is well known 10
be the policy Of England To protect the agriculture
Of that country against compeliii n ON without
hence the unwlse aud iniqpous syslem of corn ta,gs
BY the operation Of this system, in ordinary wears
the home market is shut against the foreign prodn-
CIR: IN ex ldinary Years, when The prices range
10 aceftaIn height, Ills thrown open, Nv SIR,
this system IS most singulally we'll fted 10 produce
commercial fevulslons, for, in ordinary years, the
home production OF bread stuiIs is adequate 10 the
home demand. Ii is well known that Trade between
nations, settles itself down 10 the condition of ordina-
", and not extiaordnory years. consequently, the
imports aud exports OF Great Britain, according to
well known law OF commerce, will generally balance
each Other IN tie iomer bui mol IN the latter PERI
DDS. The effect Of this is, that the extraordinary
year, thtle IS sudden balance created against Eng
land, to the whole amount OF the value OF i,nDoyfcd
bread stun This produces turn IN the exchange
with surrounding nations. and a consequent demand
on gland for specie this Of course, ia turn pro-
duccs an increased run upon The Bank Of England,
and forces upon htra system of rigid curtaiment as
long as ii lasls as lie Bank OF England contracts
so much HE whole system of country banks and
with this general and Simultaneous contraction OF
The banking system, must necessarily commence lie
contraction aud partial destruction Of the super.
structure ot private cledu.-The whole contraction
operates simultaneous reduction of prices through
out the country, aud consequently checks the pur-
chase II exports, whilst stn uates the sale of ex
ports and nus the evil OF shart crop il remedcd
By the help OF these simple views in relation TO the
English trade, aud lhose that have been before
picsented III relation To our OVID, ] think we may
easily prrcieve the Injustice Of that portion ofthe
Message relating to dependence on Great Br-
lain.
dependence flows from the fact HAT arc each to
market for our great staple. We'll lhen, may we
watch with deep socitude the arrival of the BY
The Atlantic steamers. We'll may weieel anxious
about that market which directly animaes aud viy-
fes the enterprise aud industry Of third Of our
population.
But. 1t seems, never afraid Of The rise in tie
prIce d breaI stuls in England event which for
mety announced the highest degree OF prosperity 10
the farmer; and II Is limited, HAT the Bank OF ELg
land, together with our own banking system, has
produced this effect, aud ii.dt the two have operated
/ a Capitalization Of our commerce IN London, and
inade system the satete,of the BRUSH. Here.
il seems 10 me, that the President las taken most
lnckiish position for who sensitive in regard
| to Bauk OF the United States. For. if this relation
OF dependence, parl, is TO be deprecated, and
, II arises from the bank NJ system Of the two COM
lrcs the fair inference would seem TO be, that the
Bank OF England, by her great capital aud credit,
had produ crd tbs cenralil N. tendency IN our COM
Il