The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1843-05-23
New YORK correspondence.
New YosK, May lslh. lsiS


late years than political economy; and no PLAN
and clear matter has been more myslihed by
hunting after some standard Of yaue-in my |
opinion search as uitless as the search after
the philosophers stone. Do not fear that
shall iniiict upon your readers a lecture upon
political economy-a subject which the school
men are endeavoring to convert into positive
science, when il is clear IL can never be any
thing more than reidtire. For that which is
perfectly good national economy at one time,
may be detrimental al another SO, shall let
those who love 10 deal in mysteries go on in
their pursuit of defining their terms, and seek
ing for the tue theory and an abstract science,
in the aucuaing concerns of human pursuit
and let us Try if we cannot draw some practical
wisdom from what is passing around US.
When the country was thought 10 be in the
most prosperous condition-when real estate
and domestic produce were at more than double
the price they will now command, the specie in
the country was diminishing every day, and al
most before any one was aware Of II, the explo-
sion came, The bubble burst, and the air-built
castles vanished.
NON, hen every one feels impoverished, and
when our industrious pursuits appear TO be all
filled up, agriculture, the mechanic arts, and
trade at low comparative ebb, specie is flow
ing into the country in large quanlitles--lhe
floral credit is restored from great depression,
and individual pursuits of all kinds are begin
ming slowly 10 resume their former activity All
this takes place in the face of debt of many
millions to Europe, on which interest is paid,
although there is large amount on which it is
suspended.
dence the public have in those who are so ably
employed IN administering the Government, and
the known sound and moderate views of Presi-
dent Tyler: but there are natural causes, and it
Is 10 the examination Of these, in brief way
hat propose to call public attention, with a
view to future benefit.
Letting alone, then, the doctrine that the pre-
cous metals the standard of value, | propose
to show that they follow, like all other articles,
The simple law Of supply and demand, going
" here they are most Deeded-where they will
always pay profit in return for articles export
stance.
As promised, shall say nothing about theo-
rles, b~t confne myself 10 the practical operation
OF things as they now exist, in contrast with the
state OF trade some years since, when every
ndholder had city, either above or under
water, and when fortune appeared 10 be with
in the grasp Of every SPECTATOR.
TIC those " no had become indebted during
the whirwnd of Bank excuses, (lhe true
Wing polcy,) and had to pay when they ceas-
ed inevitable ruin followed for renewed credits
w ud not pay debts-nothng but money would
answer; and as property purchased at time of
great expansion can scarcely be converted into
money at any price, when It's inevitable conse-
qnence, a and rigid contraction takes
place, a debtor must fail, unless he had fortune
| to lose commensurate with his Indebtedness.
Now, IN all this, there is no mystery-every
man can understand it and common sense ad-
monishes us TO beware of the cause, that we
may, in future, escape its effects
But contraction like expansion, has its limits /:
property and labor sink down below their rela-
tive value. Over production is checked and a
demand commences, which gradually, though
slowly, Increases, and soundness and confidence
begin again TO take place in the same ratio.
Such is The exact state Of things at this mo
ment. A severe curlailment in the circulating
medium, which had been enormously inflated
by Bank credits, and had over simulated every
pursuit, stopped them all of a sudden-internal
Improvements ceased, importations of foreign
articles became very much diminished, and most
OF those persons thrown out Of employ from
these causes had recourse 10 agricultural pur-
suits, increasing the supply, while they greatly
lessened the demand, numerous consumers be-
ing converted into producers. SO low did all
these causes reduce the value Of the produce of
the farmer, that in many places, distant from
market, his crops were not worth gathering and
where they were near a market they were so
low that they could be shipred to advantage TO
almost any foreign port, aud thus added TO our
planting products much increased our exports
Economy in individual expenditure, and the
scarcity of money greatly lessening the price Of
imports, the demand for them was very much
diminished heavy losses fell upon the import
US, tANudh-t uaNh upOn oul tApullo l'H Ut-
low par; instead, therefore, Of British aud
French goods, we rec,iy i've our returns largely in
specie.
Let US pause moment, and examine this
rapid statement, and II will | think teach us a
most useful lesson. 1t shows, as plainly as any
thing can be shown, that all the remedies pro-
posed by Mr.. Clay and his Wing Congress,
the evil only TO have made its dIss, trous results
more severe after rroonging our misery. 1t
ould have been, in effect, like giving more
rum to The inebriate, still more and more TO de-
bill tate him when the stimulus was Withdrawn.