Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1843-01-19

stances twas impossible prevent sysiOu the mos,
vicious combinations for carrying through the gigantic
projects LcgeiiRg became the settled tactics OF the
day. and the enormous debts Of Of the States
the runous extent 70 which carried In regard to
the railroad improvement too IL most unfortunately hap
pcned that Il oilers trun the canal In very essential
paTtcuarthe OF repair uing inst, but becomes
immense about the fifth The consequence of which
has been that perhaps not more than cnetrd OF the
railroads built In the United States, will be able sustain
the expenses necessary for repairs, and consequently they
be dead loss the States and companies which have
built them This mischief was done before time could
test their character
Let examine for a momen, into the effects pro.
dueed by the disbursements OF the borrowed
Tor purposes ot internal improvement The effect Of dis
burning large OF capital. particularly II borrowed
ron abroad IL initiate the currency elevate prices
diIuso apparent prosperity Throughout the whole dis
bursemenL Now when consider that between and
two hundred million dollars were borrowed abroad aud
dsoursed among us, cannot fail 10 acknowledge the
presence OF most potent for the continuance OF
mad speeustons. The luxurious habits into which
were falling and the portations from Europe
TO satisfy them would quickly have turned the exchanges
against and forced upon the Banks asstemo contraction,
but Tor this constant borrowing of capital from abroad which
was posponing the evil day, make II at last with
aggravated pressure. What sgnicd balance against the
nation OF twenty millions of dollars commerce,
that sum should be borrowed during the year from abroad
TINS borrowing and spending OF capital is sometimes
deusive IN its immediate effects to make itself APP
pear blessing Such the apparent prosperity OF Eng
land under this system during the expensive Of Nspo-
eon that even the strong head Of Arthur Young
Ell y and In the cxacy Ut his delight he exclaimed that
the sun had never shone such of prosperity
England then exhibited.
In considering the this active period Of specua
non must forget the tremendous agency cxcted
the fact, that national debt paid off, and that sud.
denly great surplus accrued. IL remains
be tested whether Bank currency like ours, possibly
he preserved from ruinous vOscaons, long the
Venue OF the General Government shall be
It now IS and no national deb, remain be quidated.
III surplus accunulaes and Is deposited with che Banks
1t eNces the whole OF the deposit banks overissuc;
as deficit and the banks called
fund, violent curt1ilment with fall OF
prices. When national debt exists these fluctuations are
prevented by regular application of surplus funds H.
qudstion Now il happened that our national debt was
paid off in the very height OF prosperity, and surplus
revenue OF SI00O0O0O deposited in State Banks
the result OF which was IN connection with other
pump up the mania for speculation To a pitch perhaps un
preeedented in the history OF country.
After having thus pointed the which produced
and prolonged the season of high prices and apparent pros
penty will now consider for those which ter
minated tins period, by puneing the into sort of
collapse under the pressure OF great debt Undoubtedly
as the se IN Cotton was the incipen aud principal
in generating system speculation which so long ragged
IN this Country, the fall the first cause that rtdey
arrested its progress With the fall in Cotton the South
western States which had been in the business of
speculation were inst brought 10 pause. Men who had
DO rowed largely when Cotton ut nineteen cents per
pound could but become bankrupt when it fell seven
and eigt With the d. wn pc of Cotton I'll other
agricultural staples IN country like rs will or
ter down. With rapidly descending prices OF course
the scenes OF prosperity which whole country exhibited
was changed 10 one of gloom and adversely. Our system
OF Improvement was every where arrested. Rail Roads
particularly, far from realizing those brilliant results
which were 50 iondy anticipated So sudden has been the
reeoi that in may of the States half finished roads have
been abandoned; and really useful works have sometimes
been sacrificed for want Of complete them The
States that have speculated and deeply in
debt have OF course been the greatest sufferers As long
a. the system OF borrowing continued interest even
was paid by loans; but when that system ceased the
States awoke 10 the sad realty Of their condition. Hher
to enjoying all that boaed prosperity, resulting from the dis
buTsemcnt OF foreign capital they suddenly found that the
money tides had ceased to flow in, but commence
flowing out They called raise the taxes great
y even to interest their debt, moment when
prices had every where sunk minimum, and the whole
country particularly the debtor States struck down
by financial paralysis.
CONCLUDED Tn-NnRRnu1