Wheeling times and advertiser. [volume] (Wheeling, Va. [W. Va.]) 1839-1849, 1843-03-21

Il paper -l1oS sddp.
BOSTON. Dec 10, 1912.
| Dear SH-GOvernot Lincoln, the collector of this
port, has furnished ms with a cuIy Of your letter To
him OF The 29ih ullmo. asking for iniomaoJ: tu fur
nish ground. Tor forming opinion of what will
probably he the amOhnt of accrmng revenue. under
/ the present. tariff. fuT the half year ending 3O;h
June, loI4. TO which he has invited every attention
and asked Tor response upon the several points
| suggested. With this request / very readily CON-
ply.
! The great difficulty in the case arises from the
circumstance that the opinion 10 be formed must
he made up during the presence OF rcyuls,un in
trade OF a severe and general character, and must
nave reference OF that revulsion, und the greater or
less degree Ia which reiu cling activity and prospe.
| 'iy shall promote general increased consum ption
especially that of foreign commodities
have seen many Of these revulsiuns in my day.
aud have paid good deal Of aiienlirn TO their
course and accomPd Iimenis Their causes are
some what various and frequently involve great DIFF
ierenres OF opinion, but their course is generally
pretty uniform. and TO an accurate observer fur
nishes some data 10y which to Judge when their
termin Ition may he expected, and IN What condition
they Will lie we the body polite The most severe
within my recollection wns that -G 1919, resulting
from the change from a long continued depreciaied
"aPer currency 10 sound one, both in Europe and
| he United States Severe reyuI,inns occurred I'm
! 1910 and 1922 moderate one ia 1882; an arii-
cal, and OF course shuri one in 1884 That Of 10.
81 was excessively severe, growing out Of the Wild
oNer'rade OF 1886, and by lis arrangement of
TIE currency may be considered as intimately con-
hecied WIN the present state Of things.
revulsiun shows lis first symptoms in me rise
OF me ioFcign exchanges To The point which causes
the export Of specie tOR degree which makes il
necessary iur the banks 10 apply the screws or in
other words check their discounts. according 10 the
greater or less Intensity Of the occasion bat To tho
point necessary stop the outflow of specie N hich
/ al % Thar II
PRESSING scarcity Of mONey, red"cuun OF prices in
stocks aud oil commodities. failures more or less
numerous, reduction in the amount Of IMPORTS
dul ness aud slagnatiOn in trade
VioleRi pressure in the money market seldom
continues TO the commercial cities three or four
mo1ths-I should say never so long six. A very
shorl iima suthces TO check the export Of specie
which, II the pressure is severe soon bcgius TO W
bach by importation. Money becomes plenty in the
banks but great disrusI Of credit oTss; Of course
u can only De Ubamcd on undoubled secuTiIy.-
me holder aud more enIcrprlsing operators being.
many OF ihem swept of the board cauilun becomes
the oruer OF The day-but, as money continues 10
become more and more plenty, prices gradually rise.
operations ~ trade are successful, inspires
commence impprlaiIOns increase, and things resume
'heIr usual course. anil rapid motion Of the
wheel brings on Overirade aud another crisi-.
should INK The Term Of year about the usual pc
ROD Ol diminished importation grow ing out of vi
activity ~ trade.
To tPpIy these remarks our present case. The
tremendous revulsicn OF 1887 commenced ia the
month Of March. aud was So violent as TO cause The
suspension Of the Banks, This changed in a great |
measure the usual course Of events and in truth
greatly aggravated the usual evils Of lson.-
New York and New England adopted the proper !
course. q" reduction Of The in .ied circulating me
dun to the specie basis. and their banks actually
resumed IN April, 1888, and their trade resumed it's
usua. course.
The policy Of the United States Bank, innuen-
cling the whole South and West, was different Mr.
BIddle was opposed 10 resumption, and made n"
prepafaions for a. but, the contrary. extended
ms operations. Al the same time. IN July, after
the successful resumption IN New York under the
pressure OF public opinion. The bank undertook
resumption oil unprepaTed IL was BY the free
use oi ITS credit. then unbounded. the bank was en-.
abled TO keePup system Of imitation through the
whole SUnh aud West, under which trade revived
10 an unusual degree. under an art fetal system
which continued until October 1899. when the Gre
dat OF The bank had been 50 shaken that il broke
down ia irretneSshle bankruptcy. The whole
Souh aud West went with il. and thus wos produ.
eed another paralysis and revulson Of the severest
kind.
This continued through the greater part Of the
year 1910; but in 1871 trade revived again - its
ia average extent, notwithstanding the deprecia
ted state oItbe currency throughout the large por
uOn OF the country
The early pari Of The year ] $40, however. found
the system Of rredeemable bank paper coming 10
close. The banks OF Philadelphia nnd Baltimore
resumed specie payments. In Now Orleans a spe-
Gle currency was resume d. whilst nearly ali the
banks 10 that city went by The board IN one gene.
raj crash
IL the mean Time. Virginia. ard The whole S,uth
and West. with the exception Of Alabl ma have ban.
lshed the miserable currency Of irredeemablo pa
per, and established that of legitimate and whole
some character Bot this could not he done with.
out o crsis-a pressure in the money market aud a
paralysis in trade u is he penalty inevitable
from The adoption This false STEM Of miscslled
relief This sufficiently accounts Tor he stagna.
ton Of The last sr Or light months snd the great
consequent reduction o. prices.
ln The mean time 10 seems reasonable. 10 sup.
pose that thls siognai0R and depression has nearly
reached us term. large import Ui specie has o.
ken place, and money los become exceeding album
don't in all The commercial citios. THIS slate Of
things ever fails 10 sei trade in mJion. The
general discrodt BOO he inferior, including their
banks. has thus To- retarded il bui cannot do %
much longer.
The county 10 not 10 debt abroad Large crops
are in the process o finding market, which, even
a. The Pressntls lew Prices prepare the way Tor an
increased cons ImpliOn. great check upon i'm. /
porlalon hos existed for sH months. and The stock,
u foreign goods are by no means excessive.
10 b. inevitable that very considerable improve
ment IN trade should take place during The fret
lalf lhe year 1913.
The Ifar.,rtsfigrs. however Juring thia period