The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-05-21


item is tho fact that the commercial transactions Of
England concentrate principally in London, and few
commerce Al and manufacturing towns, which admits
of and may be assumed, producing greater and
far greater activity Of the circulating medium enabling
il To accomplish given amount Of business In COM
paratiyely short time whereas the circulating medium
Of the United States Is forced spread itself out
our wide domain and therefore accomplish but
comuaratiyeIy small amount Of business in given
time.
These two principal items sufficiently compre-
hensiye Of the lothsr things, we think will be adj
ni,,ed TO settle this question and 10 show that nei-
Their in 1886 nor in any other period of history,
have we had an excess OF circulating medium, as
compared with the demands of our business The
only point so far as see, from which this posi-
ton could be sssaed would be showing that England
has also had contemporsneously with u.s. ola
circulating medium. Even then, il would be mani
fest, in view of the commercial rivalshp Of the two
nations that one could afford 10 have its circulat
ing medium cur,ailed unless that Of the other
reduced in the same proportion Certainly cannot
afford it,
In chat, then does the eIpanson," iOhich much
talk and defamation has been exhausted, consist?
In an abuse Of credit simply. Ia 1886, the aggre-
gate of the loans and discounts the banks in England
was Sl6s 100000; in the United States il $780,
100000 1t be observed that this fac, is guide
to determine the amount Of circulating medium The
excessive Of credit may increase slightly but no,
materially. We not prepared to say that none
tary expan ion il not possible; though not how
ii can be- at least we think il would be difficult find
such thing in history, il mean by il greater
circulating medium than the business Of the country
has required at any given time.
What is the cure for abuse Of credit?
1t must cure itself, and will do so, If left to IT,
self 1t is too delicate and too sensitive part
of the moral machinery Of society to lay the rude
hand of government authority upon, for lc-
gisation- to .tamper with. The action thereof is
identical with freedom. | trust my neighbor
far as | please, and when ! find it unsafe, l
refuse to trust him. This is the only law that cir
cumscribe commercial credit, and it will apply the
remedy quicker than any other. There is no other.
What, then, hare been our difficulties?
Bad government nd an unsound system ofbanking
The former has to great extent been the cause Of
the lat or. Under good government our banking
system might and would have been reformed. But a
Government, making upon currency Of its own
creation, has put the whole machinery out of order,
impeed its agencies to desperation, and occasoned
frghtfa reaction upon the wide community.
The History.
The causes and effects are obvious in their connex
on with each other The demolition of National
Bank stimulated the creation Of State Banks in the
greatest excess too rapidly to be sound and the nj
ted States Bank at Philadelphia, State institution, is
Of the fruits the removal of the deposites genera
ted disease in the State institutions and tempted them
to overacion the order Of the Secretary Of the Trea
suy of the United States to loan the deposes and
urge them upon the public, seduced the whole
nifty into the widest speculatons and occasioned the
abuse of credit spoken of above the surplus
were unnatural product of this operation the vio-
lent action Of the Specie Circular upset the ship under
such press Of sail and at last the Sub Treasury
finished the work.
A steady and uniform Government abstaining from
hazardous experiments and violent usurpations would
have kept us ON in good way. The little and tran
silent of the enterprise Of the country always
carry their own with them. But when Govern
ment itself generates vice and disease in the body pol
itic and dsturbs the action of this great machinery,
the effect of disorder is terrific. II the Govern
ment that seduced the people into mistakes, impru-
dence, unwarrantable expectations, rashness Of
terprise, oveTacton, overtrading and extravagant
and wastefu expenditures No people made
such Mistakes left to themselves under uniform laws.
1t non the nature of credit to 60 thus far if it be
not stimulated by artificial and exran eous. Causes al
together alien to its own sphere.
We have only to add-Give this country good
Government and let trade be free, trade in money
well in any thing else let credit have its
r scope and legitimate action and the county will be
rich ana really faster than any other, because
there is no Other which has equal with equal
enterprise to work them Capital will depart but
will always flow in, SO long such is condition
and character and all that comes will reproduce itself
thousand fold This country and the people Of
this country capable of producing
wealth and national prosperity, under free and good
government than has yet been laid out for them
in their hopes, the predictions Of mankind
The great principle which the improvements Of
the country have been projected sound one, and
nothing is required to make it exceedingly and meal
cuaby productive of national prosperity, but careful
notice Of past errors and such prudent management
of future operations, experience may suggest We
will also say, that, in opinion, should
have been baked nation, if our rulers bad not
baked us.
APPOINTMENT OF EDITORS
We notice in the Intelligencer Of yesterday COM
munication this subject. Like the editors Of that
journal, we not aware of any tendency among us
disanchsc this class Of our society II we thought
it so, 81 oud indeed think it just subject of