The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1843-12-29
GREAT DISTRESS IN THE MONEY
MARKET.


alarmed by dreadful accounts of distress in the
money market--panic ia the money market
pressure and tightness in the money market
confusion Of exchanges-extensive failures
Of individuals and banking institutions, and
other similar horrors which used to abound
IN The Wing journals during Mr.. Van Blu
f%nss administration. We recollect that the
I, editors Of The National Inteligencer were fond
}SSg giving in their personal experience Of the
s&tIible state OF things then existing, and would
xsate their pecnniary disasters, arising from dis
Il 160NKt op uncurrent money RENTED n them, in
u style pathetic enough 10 sdraw iron tears
down Piato's cheek" The state Of things
which Induced these clamors and croakings has
now entirely disappeared; yet, strangeto say,
we a. not find these gentlemen expressing any
feelings of qualification or thankfulness, either
10 heaven or man. The favorable change which
admitted. and only indirectly, in an occasional
publication Of the rates Of exchange, without
comment, or in some such item of news as the
following, which we find in the National Intel
ligencer Of the 18th instant, copied from the
New York Express:
MONEY MATTERS IN New YoRK-The New York
Express of Thursday morning says
"a very large amount of money mortgage,
bearing per cent, has been paid off because the
holders of the mortgages would not reduce to six.
Never has there been any thing like the amount of
cash on hand that there is at present seeking invest
mont Moot IF tho lor0e eatotos and institutions
have of their own accord put down the rate Of inte
rest from seven to six per cent Immense sums,
however, are lying idle that cannot be lent out on
bond and mortgage, and very large sums have been
lent at five per cent which is the fair rate Of in
terest at the present time favorite property.
SIT is little singular that while the rate of inter-
est has come down on all business paper from seven
to three. four, and five per cent it should have kept
up mortgage loans. Formerly it was common,
when the rate of interest was twelve per cent per
annum on business paper, for loans to be made on
mortgage at seven. If money continues as abundant
as il now is, the time must speedily come hen loans
on mortgage will be made at four and FIVE per cent.
per annum."
Now, il the Integencer were the official or
gan Of the Administration we think ii would
hardly lay sue b pregnant facts as these before
the public, without indulging in some glori6ca-
stion, and contrasting the present state of things
with that which existed before and Immediately
after the Wing party came into power when
something more than twelve per cent. per an
mum was common on the best business paper in
New York, and when the shavers of Wall
street turned up their noses al the credit of the
Government Certainlyrhe present Admins
traon is as much entitled 10 praise for the abun-
dance of money, and low rate of exchanges, as
the last Administration was TO blame for an OPP
posite state Of things.
But the Inelgencer could mol have been an
Administration organ unless National Bank
had been established, and it can see no
good in the workings of any Administration
opposed TO a Bank, but would rather at
tribute any symptoms of returning national
prosperity to the mere caprice Of fortune. To
us it appears evident that the present distress in
the money make Of New York, arising from
competition among lenders Of money, is in a
great degree attributable to the want Of Ma
rional Bank and would hardly have existed had
the Bank been established The Monster
would soon have devoured not only the inn
mense sums lying idle" but have licked up all
the loose change in the country and all
that il could have collected, in the shape of cap
ital or available deposites, would have been dis
uibu,ed TO its favories in accommodation loans
on personal security. The money market
would have been as tight as drum and hold
ers of business paper would still have been at
the mercy of shavers. But the Banks now be.
ing compelled TO take care, each one Of itself,
having no regulator to look after their safety,
are necessarily cautious, and lend only to those
who are able to repay. Business paper" is
now in fact, as well as name, business paper,
and the dealing in it less gambling business
even than loans on mortgages. The low rate
of interest does not, to be sure, indicate very
active state of business, compared with past
times but il indicates a safe one, which, if let
alone. will necessarily become active and in
creasing, and is, at all events, much to be pre-
ferred TO fuctuating and inordinate rates of in
terest, occasioned by desperate exertions of
spectators to maintain themselves
The three great charges brought by the wing
party against the last Administration, and upon
which they succeeded in overthrowing il, were
the disorders which it had occasoned in the
currency and exchanges, the infdelity Of its Off
GERS entrusted with the public money, and the
Intolerance and bigo,ry of ITS party spirit. All
these grievances have now disappeared and yet
the Wing leaders are as far from being satisfied
as ever They bave, in reality, no complaint
10 carry before the People; they have nothing to
offer them but renewed contest for National
Bank, Of which the necessity is less obvious
than ever, and increased burdens for the pur-
pose Of dscharging the debts of the States
They rely for victory solely upon the unpopu.