The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1843-09-28
THE UNITED STATES OF AMERICA

rty of the United States" the spectacle is plea
sing to contrast their actual condition for the
commercial year, commencing on the LIST September,
1912, with that which commenced on the Isl Septem-
Der, 1885, precise estimate cannot be placed upon
Inc value OF the exports, to foreign countries, from
the crop Of 1912; but enough has been ascerained to
warrant the belief that it will not fall below $685.
! OO0,0OO The shipments from the manufactures,
the forests and the fisheries will extend TO S35 600
600 more; to which may be added SIS 600, 900 for
the coinage Of native bullion and the gold and silver
belonging to emgrants The receipts are thus swell
ed from all sources, to the enormous sum Of $685.
O0O,OOO!!! The imports, if we take the first quar-
Ter OF the year. beginning LIST September, as critic
ron OF their value for the other three will only reach
$40 600; but we will estimate them $50 600 OOO
and balance of trade will be then left in fapor Of
the United States, for the year terminating the 3lst
day of August, lS43, of S9O,OOOeOQ This, with
100000 from the mint and emigrans, increases,
in t,celre months their pecunory strength SlO5OOO,-
| 0OO!!! Now, let us go back to the commercial year
| of 1885, when the people Of the United States were
| regarded as peculiarly prosperous, and when every
description of securities having upon their face the
name OF one of the sovereign States Of North Ame-
rca, were eagerly grasped at in the funds market on
this side of the Atlantic. The imports, during that
period, reached the value of about S195 OOO, 900,
while the exports, Notwithstanding the high prices
which cotton, tobacco, etc. ETC., commanded, were
only to the value of $S5,0O0,OOO If we calculate
the amount coined at the mint and carried by emf
grants at the same in l842, the balance of trade
against the United States sos, 000, COO making
change, favorable to them, between the two wears
1886 and 1912, of 0O000OOO! Was such result
ever witnessed in any age in any country before !?
The world may be curious to know in what way such
singular transition from adversely to prosperity was
occasioned. 1t can be readily explained
In 1885, the Bank circulation, in the United States,
was $4,000, 900. In ls4l, it was reduced to SO,
100000. In l842, TO S55,OOO, OOO-and, in March,
ls43, to S390O00G0 In 1896, this paper currency
was so abundant, and consequently SO easily obtained
that industry diverted from its legitimate pur-
SUITS A specializing mania prevailed among all
classes, from the millionaire down to the humbest
farmer, OF most demoralizing character The la
borers implements-the axe, the plough, the hoe
became rusty for want of the fields were cover
ed with brars and thistes, instead Of golden harvests
AS an evidence of this, the singular phenomenon was
stus to the value of a. OOOO OO In 1897, the Banks
which had been extending facilities, as liberal dis
counts were termed, to the merchants, planters, and
others, stopped payment from Maine TO Georgia They
ascertalned that their debtors had the ability TO
meet their engagements they maured and as er-
change upon Europe had rsen above par, on account
of the demand to pay for the extraordinary importa.
tons made the previous autumn shipments of specie
commenced, which caused a run upon them, under
which they were forced to yield. Having, in most
instances, violated their charters by failing to redeem
their issues on presentations they sought the clemen-
cy of their respective legislatures which was invar
ably extended. Ii was believed that, in twelve
month, so soon as another crop 10 market their
position would be strengthened that they could
sustain themselves. AS the Banks, however could
not retire their obligations, they could not with
any Propriety, resortto coercive with those
whose bends they held and hence their ability to pay
daily diminished In 1898, in the autumn arrange
ments were made for resumption during the next
spring The United States Bank Of Pennsylvania
led off, and was followed by those in most of the
other States In September, 1899, the solvency Of
this mammoth institution, Omitted States Bank be-
came so questionable to cause most of its notes to
be presented at IFS counter and its vaults were spec
diy drained Of every dollar which they contained
When its true situation became apparent confidence
was much shaken in all Banks that they could keen
no clrcu alton qloat and the result was that such as
had larger issue than their immediate assets were
forced to suspend second time. Many were forced
into liquidation while heavy losses sustained by
the holders of their notes but this depreciation ena
bled the debtors 10 them to make payment. In lS4I
the currency reduced one half from what il
amounted to in 1886 Facilities" were entirely cut
OFT and liz tness in the money market experienced
before unknown. The agrculturalists now began to
realize the periIous dilemma in which they were
placed and to look about for means TO enable them 10
extricac themselves. Happily they were near at
hand. The fertile soil had only to be filled faithfully
to insure them. The husbandman awakened from
his revere Of castle building in the air" and what
do we behold' Such yield of products from the
earth, last year, astonshes The world l-8i6 O75 600
bushels Of grain; 946,OOO,OO0 pounds of cotton
272 900 pounds of tobacco TO say nothing of s,,
gar, rice, and various other articles The season !,
may be said was proptious one but all seasons re
so, if the laborer does his duty 1t cannot be other
wise IN country embracing such q vast territory
Refreshing showers of rain, and the genial rays OF
The sun, always descend a large portion of its
fields The harvest of 1913 bids fair to be even more
| full than that Of 1912 Il!
The bank circulation has attained its utmost point
Of contraction, at which it will remain nearly station
ary is not larger than the specie which it repre-
scnts, and therefore its value undoubtcd Although
reduced TO s39OOo,OOO, it ample, aided by the gold
and sivc (which has been let loose BY quidang banks
and by capitalists who bad boarded away for
ry wants his sonnd currency is constantly augment
ing. From the first of January to the 18th of May.
500, 00O,OO0 were received at New York, New Or
leans and other ports in exchange for cotton, tobac-
co, &c. &c. similar result will be witnessed next
year, and every year thereafter, as long as the pco-
pie continue industrious. Economy and industry
are handmaldens, While exports are large mpOrts