The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1843-12-29
GREAT DISTRESS IN THE MONEY
MARKET

money market-panic in The money market
pressure and tightness in the money make
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
ren's administration. We recollect that the
editors of the National Intelligencer were fond
of giving in their personal experience OF The
terrible state Of things then existing, and would
relate their pecuniary disasters, arising from dis
count on uncurrent money RENTED I" them, in
a STYLE pathetic enough to draw iron tears
down Plato's cheek" The state Of things
which induced these clamors and croakings has
now entirely disappeared yet, strange to say,
we do not fad these gentlemen expressing any
feelings of qualification or thankfulness, either
10 heaven or man. The favorable change which
has taken place seems to be even reluctantly
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 Incl
ligencer of the 25lh instant, copied from the
New York Express
MosEr MATTERS IN New YoRK.-The New York
Express of Thursday morning says
"A very large amount Of money on mortgage
bearing per cent, has been paid OFT because the
holders of the mortgages would not reduce it to SIX
Never has there been any thing like the amount Of
cash on hand that there is at present seeking invest
ment. Most of the large estates and institutions
have of their own accord put down the rate of ate-
r-o.~ o,x Inxn
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 on favorlte property.
II is little singular that while the rate of inter-
est has come down all business paper from seven
TO three four and five per cent it should have kept
up on 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. Ii money continues as abundant
as il is, the time must speedily come when loans
on mortgage will be made at four and five per cent.
per annum."
Now, if the Intelligencer were the official or
gan of the Administration, we think it would
hardly lay sue h pregnant facts as these before
the public, without indulgng in some glorifca
ton, 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 Certainly the present Admins,
tration is as much entitled TO praise for the abun-
dance of money, and low rate of exchanges, as
the last Administration was 10 blame for an OPP
posite state of things.
But the Inteligencer could moi have been an
Administration organ unless National Bank
had been established, and il can see no
good in the workings of any Administration
opposed 10 Bank, but would rather al
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 market of New York, arising from
competition among lenders of money, is in a
great degree attributable to the want of Ma
tional 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
tributed To its favorites 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 al
the mercy of shavers. But the Banks now be
ing compelled 10 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,
aud the dealing in il less a gambling business
even than loans on mortgages The low rate
of interest does not, to be sure, indicate a very
active state Of business, compared with past
times but ii indicates safe one, which, if let
creasing, and is, a, all events, much to be pre-
ferred to huctuatng 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 Administrations and upon
which they succeeded in overthrowiug it, were
the disorders which il had occasioned in the
currency and exchanges, the infdelity of its off
GERS entrusted with the public money, and the
intolerance and bigotry Of It's party spirit. All
these grievances have now disappeared, and yet
the Wing leaders are as far from being satisfied
as ever They have, in reality, no complaint
10 carry before the People; they have nothing tic
offer them but renewed contest for a National
dian ever, and increased burdens for the pur-
pose OF dscharging the debts of the States
They RELY for victory solely upon the unpopu-