Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1843-01-20
[CoNNusIcATED.
THE TIMEs-srAY LAWS AND STATE DEBTS


THE TIMEs-sTAY LAWS AND STATE DEBTS.
IooScLUDED.l
Before proceeding consideration Of the policy which
should be pursued by the State Of Virginia. in reference
her debts, let examine for moment what is likely TO be
the length OF the pressure, which now weighs heavily
the country. In investigating the history Of fluctuations
in prices, find they cycles Of less greater mag
ntude for example, the cycle occasioned by the removal
Of the deposits exceedingly coHeentie-pces fell and
again in less than the period of twelve months. The
fall OccasiOncd by monetary arrangement and
OF cOuneracted the that arrangement
ceased. The cycle Of 1875 concentc and embraced
IN much larger BY not attending the fact here
mentioned, many Of our politicians have Numbered
widely in their specuations financial difficulties;
some regard the Banks the sole Of distress
others charge the blame entirely upon the amper
ing OF the Government with the currency. Now, were
called upon for an opinion, would state, what consider
very nearly general rule, that where prices revolving
IN large cycle the system rather 20
the general movement; when however they are re.
yolyng in very small one the monetary system oener
than oJeys: IL oener the than the effect
OF course, this rule will not apply to any isolated
modify. We how important h ascertain the
character Of the cycle in which general prices revov
ing The cycle commencing IN 1919, a very onlarg.
ed one extending through period Of nearly twenty years
Prices did not attain their lowest point Of depression be-
fore eighteen hundred and wentysx; afterwards attain
their highest point before eighteen hundred and try-sx
The cycle, in which prices revolving, is evi.
IDENTITY Of the enlarged character Just mentioned The
minimum point is perhaps attaiued but there will in
all probability be many years before any considerable eeva-
ton will take place. Are suppose them that the pre-
sent excessive the money market last thro
series Of years. by The present excessive
demand for money and consequent high Of interest
arise no. from profits to be made by the Of money! but
from mere eogcrncss to borrow IN order prevent the
sale Of prOperty-Or, what j. less worthy 10 dispense
Wih rigid economy. Yery few years. II the Legislatures
will only a5gain from the uHwe policy Of Stly Lava will
be sufficient 10 carry The county through this transition
period When the most reckless nDd wild Of the specua-
tors have become bankrupt when Others who have run in
debt have Invested themselves Of oil their luxurious habits
and descended that level imposed upon them by the fall
Of prices, and their indebtedness money will then be ess
and less sought after pay deb and a. the general Of
profits will always be low while prices orc low, less and
less money will be borrowed high England has al.
ready gotten thus far. BY late accounts, that abun.
dance u capital be procured IN England,
doubted security Tor aud half 10 three per Con.
sols one hundred New York, and large pOr-
ton q New England, almost in this condition. There
m abundance Of oansbe capital IN New York, hundoubt
ed security be given; and Virginia will soon be IN the
condition, there s amperng with contracts: and
must recoect that nothing prevent the Of
suffering after period Of speculation. In the descent
from very high " very low level Of prices suffering,
bankruptcy, and partial revolution in property accompa-
med by general change Of habits from prouscy
gan ngdy economical just necessary and ineyi.
table, before The feuruo prosperity the intervention Of
night between The setting and the rising Of the sun And
when this period b possed, and pas must times will
again become easy OIL whose fortunes hopeless will
have become bankrupt those whose debts ore NOT 20 oner
Gus az 70 crush them will by economy and eNsron be- able
eventually 70 pays ~ per cent will be hgh proht-and Of
course, abundance d will be- offered that rate;
in fine, the whole community must commence new ca
ree based upon low average Of prices, instead q high
one and YET not any imagine that this period
Il passed. prices must necessarily rise; That msy be the
caso-England has passed IT, and yet Cotton and every
thing else, have declined in that market The L. States
after he ast war had passed long before products
reached their lowest point Of depression Lcno one hon
for moment entertain the ides Of Stay Law on such
fallseious ground ss his General high prices never