Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1843-01-26

,;,i;oos If dollars on commerce, il twice that sum
shorld be borrowed during the year from noroao i'
borrowing and spending of capital IA sometimes %
lu,ive in IT'S immediate effects, az TO make war ''s.
annsar blessing Such was the apparent prosperity
of England under this system, during The exp.
wars Of Napoeon that the strong head o. al'pu'
youno vas turned by il, and in The ecstasy oil n'S &c
rpht he exclaimed that the Sun had never snon. ~
such scene of prosperity England then r.
In considering the causes Of this active pefou y
s,sc,Iaton we mus, not forget the ndous agency
.. ered by the fact that national debt was pau ~
and that suddenly great surplus revenue acc'ue-
II remains vet TO be tested, whether bahA cui@"!
like ours can possibly be preserved from ru'nou' -
c;llatione as long as the revenue Of the uene'ai
rnr,ment shall lie as huctuatng ms IT no" is, anu 10
rational d-bt remain 10 he liquidated. II Surplus
sccun,la,es and is deposited with the Banks, " e1ceS
~, ,.bole Of the de2ose banks 10 an over 'ssaf' Is
so9u rs defci, exists and tile banks a'e ca!ssu =" "
refund volent curlanent ensues, VII" d iu'nD1
fall Of prices. When national debt ex,ss' ."es' nae
,u.,:ons are prevented by regular application OF eur
,us funds to It's liquidation. Now, il 50 happened that
our national debt paid off in the very he,gh o .,
onr nrosperity and surplus revenue OF S4o'
as deposiled in State Banks, the result OF ~n,ch
was in connection with other causes, TO pump up inc
mania for speculation to pitch perhaps uhpieceh'e
in the history of our country.
After having thus pointed out the causes winch pro.
a,cad and prolonged the season OF high prices anu
an,arent prosperity, will now consider for moment
those which terminated this period by plung'ns the
nation INFO sort OF collapse, unoef me pressure
iron, doh, Undoubtedly the rice IN cotton was the
ncipie Mt and principal cause IN generating system
or speculation which SO long ragged III this country so
the fall vas the first cause that ruaeiy arlesseu 10
prorress With the fall in cotton, the Sou'n"es'e'n
Slaes which had been foremost IN the business VI
cuIa,ion were first brought to pause. Men who had
narrowed LARGELY when cotton at cents per
mound could but become bankrupt when Tell 10 seven
and eight With the downward price of cotton oil other
agricultural STA pies in country like ours, VIII sooner
or later come down. With rapidly descending prices,
of course The Of prosperity winch our "no'e
country exhibited was changed TO one OF gloom and
odversi.v Our system Of improvement was every
where arrss,ed Railroads. particularly, were Tar from
reaiz no those brilliant results, when were so ohoy
an,icp.,ed So sudden has been the reco tnas many
of the Sales half finished roads have sometimes oeen
ahandoned and really useful works have been saefnseu
for wapt Of means to complete them The States that
have specua,ed most and most deeply IN debt nave
of course hoen the greatest sufferers. As long as The
svs,em Of narrowing was continued interest even YVES
paid hy new loans but when that system ceaseo' the
States awoke to the sad reality OF their CONDITION.
Hitherto enjoying ell ihal oioaieo pto'pe,!, IeSus
from the disbursement of foreign capital they suddenly
found that the money tides had ceased 10 How IN but
must commence flowing out. They were calico on 10
raise the greatly even to pay iaterest on ther
debt al o moment when prices had every where SUNK
10 minimum and the whole country particularly the
debtor States seemed struck down by financial para
lyss.
Before proceeding 10 consideration of the policy
which should be pursued by the State OF virginia, IN
reference 10 her debts let us examine Tor moment
what is likely 10 be the length of the pressure, which
now weighs go heavily OH the country. In Investi-
gazing the history Of fluctuations in prices we find
they run in eyies Of less greater magnitude tor ex-
ample the rycte occasoned by the removal OF the de
posts was exceedingly eoncenrie-pces fell and rose
again in less than the period OF twelve months The
der nf
and of course was ccunteraced the moment that de-
rangement ceased The cycle OF 1875 was concentrc,
and embraced in much larger one BY not attending
TO the fact here mentioned many OF our politicians have
bundered most widely in their specuations on our
financial difficulties regard the Banks as the sole
cause Of our distress charge the blame entirely
upon the unwise tampering of the Government with
the currency Now, If were called upon tor an OPT
men, would state, wha; consider very nearly &c
neral ruIe that where prices are revolving IN large
cycle the moneyary system rather 06cgs than goeeras
the general movement; when, however, they are re-
vo,ying in very small one, the moneyiary system
ocner gocsrns than cbcysl is otener the cause than
the effect OF COURSE this rule will not apply to any
one isolated commodity. We now see how important
il Ia ascertain the character OF the cycle in which
general prices arc revolving The cycle commencing
in 1919, was very enlarged one, extending through
period of nearly twenty years. Prices did not attain
their lowest point Of depression before eighteen hun
dred and twenty six; nor afterwards attain their high
est point before eighteen hundred and thirty six.
The cycle, in which prices are now revolving, IS
evidently OF The enlarged character just mentioned
The minimum point is, perhaps, attained; but there
will in all probability be years before any consce-
rable ee ovation will take place. Are we suppose, then,
hat the present excessive pressure on the money mar
ket must last through aseres OF years: By no means
The present excessive demand for money and conse'
quen high of interest," arise not from profits 10 be
made by the Of money; but from mere eargerness
10 borrow in order TO prevent the sale of property
or, what is less praiseworthy, 10 dispense with rigid
economy. Very few years, If the Legislature VIII
only abstain from the unwse policy Of Stay Laws, VIII
be sufficient carry the country through this transition
period Whrn the mos reckless and wild OF the spe-
culacrs have become bankrupt when others, who have
in debt have Invested themselves OF oil their u1n'
rious habits, and descended 10 that level imposed upon
them by the fall Of prices, and their ndebte dness mo-
ncy will then he less and less sought after TO pay debts
and as the general rate of profits will always be low
while prices are low less and less money Will be nor
rowcd at high rates England has already gotten thus
far. By late accounts, see that abundance oil caPi.
tai can now be procured in England on unaouolea
security for and half to three per cent Consois
are now at hundred. New York, and large portion
Of New England almost in this condition. There
is abundance of loanable capital in New York, 1t IN
doubted security be given and Virginia will soon be
in The same condition, If there is no tampering with
contracts and we must rccollect that nothing pre-
vent the of suffering after period of spe
culaon In the descent from very high to very low
level of prices, suffering, bankruptcy, and a partial
revolution in property, accompanied by general change
Of habits, from profusely exlravagant to idly econo-
mical, just necessary and inevitable before The
An Of prosperity, The Intervention of night be.
tween the setting and The rising of the SUM- A nd when
this period is passed, and pass II we must tunes viii
again become easy; ell whose fortunes ere hopeless will
have become bankrupt those whose debts are no! so
cncrnus as to crush them will, by economy md eIer
ton, be able eventually to pay Six per cent will be
hnh profit-Qnd. of course, abundance OF money VIII
be offered at that rate-in fine, The whole community
must commence career, based upon low average
Of prices, instead of high one; and let not any ore
imagine that, this period is passed, prices
must nece ssary rise that may not be the case-Eng
land has passed it, and ye, cotton, and every thing else
declined in that market The IT, States, nficr the
last war; had passed it long before products reached
their lowest point of depression. Let one, then for
moment entertain the idea Of Stay Law ON such .
frlIacous ground as this. General high prices can
never in th,s country fur any length, of time,
without rise in line price OF cotton; and for this article
England is the regulating market.