Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1842-01-21
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THE SCARCITY OF MONEY.

There is fea reat on to our public in
debtedness which has not yet been noticed. The
dstrust of the State securities hat has naturally
isen in Europe, will Of course, cause the return Of
some of them to his country f0rSaie. 1t will be the
most natural con equence OF the present course OF
policy of some of the indebted States, and the rec
less indifference of the LpcolocO par To the credit
Of the States tina many holders vi be anxious To
realize on their stocks, which are now saeabe, and
even those which are depre ssed and avoid furrh-
er risk. This ha- been done already in some cases.
and is equivalent as far as we ale concerned to the
same additional amount of importation, since what.
ever is obtained for them must be RENTED to the
holders.
We alluded, the other day 10 the impression that
has been created, that the immediate cause of the
ity of money here is owing TO large loan made
to the Government, by Two Of the leading Banks
I he amount taken bv them is small, compared wi h
what has been asserted by those who have assumed
TO be informed on the subject, and who are willing
to rbe the present distress 10 any thing but the
true cause. This had very little to do with it, since
n part made at the rate of 81 per ceut, when
money could not be loaned at 6 per cent, and it was
chiefly negotiated when money was comparatively
plenty and if the Government securities had no,
absorbed II, some others would Besides rs the sum
thus loaned 10 the government remains IN the country
it could have produced general sensation, even
hadlt been much larger II might have affected IN
this clty, for moment but It would have created n
corresponding plenty elsewhere, and the rate woulC
have been speedily equal zed,
| The present scarcity is general and as we hav,
| sal is wholly owing to the drain OF specie TO pa,
our balances abroad. That these balances are crea
ted by over.lmportations does not admit OF doubt
| When we look AT the amount of goods brought out
in ante patton of he duty lev ed on silks linens
wines, dc at the Ezra Session, and the large or
I ders given IN consequence of the successful bushes
| of the spring and Autumn, the proceeds ufwhch ar
now arriving, and in proce of being paid for; wheI
we see the amour of cotton and other exports gon!
forward smaller than last year. and selling at lowe
price, we learn the whole cause.
| Had il not been for the loans obtained abroad OF
81 Il Stocks, and State securities which have an
swered to the purposes of specie for the last fou
years, the present drain would have taken place be
fore for excepting lat year. we have regularly over
imported, The balance against this country MAJ
been rapidly accommodating, and the presenl Iani'
| abroad, IN regard 10 our securities, mas enuie!y Pu
| an end to further loans. Things have come 10 .h'
cond,tion that we must either pay IN specie or pro
| duce or nannfactures; but we may exhaust our sup
nu Of hose kinds ofproduce that are not so heaNl,
yyoJ broad as TO prevent their exporation-we may
nJ iii our manufac that can he spared, ane
s,nl balance will remain. Specie we cannot seud
,Y;,hont increasing the present scarcity. We have
| aIrendy lost too much.-Whai alternative, them re
main The only one is to diminish the imports, Of
| to keep them where they are, until the growth o
| HE country shall require them.
Can thistle done, by the present course OF policy