The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1843-05-11
NEW YORK CORRESPONDENCE.
~ YonK, Mn Q, lsi3.

In the absence Of all news, II has occurred 10 me
TO throw together few hints the subject OF the pres
ent condition of the countrynot that have any very
new ideas offer though does appear to me The eaus'
es Of the late depression and the remedies for Il are not
well understood.
Why is it that such paralysis exists IN almost ev-
cry pursuit. from the agrculturis TO the merchant,
not only in this country but throughout Europe To
answer this question truly, must go back some
yesrs--we must recollect what forced state OF
things has existed-how the immense issues OF paper
money had ever stimulated the greatly multiplying
power Of labor-saving machinery at home and abroad,
so as to oversiock the mercantile world with every
article to the production of which that power has
been put in requisltion we take into the account
what an immense increase this redundancy of the
circulating medium gave rise to- in the culture OF
cotton, sugar. tobacco and all articles raised In our
planting States but particularly the almost un-
limited quantity of the crops of cotton,
The explosion which was the natural result of this
imitation, suspendlng all the works of internal i'm
provement, throwing out of employ many hands
which had been occupied in canals and railroads,
they of course had alternative but to resort to
agricultural pursuits, and created great redundancy
m their department of industry. In this state of
things natural consequence Of the breaking down
of the moneyed institutions, unprecedented contrac-
ton of the circulating medium followed, and hence
prices Of all the commodities Of life lessened to
such extent that labor has been for time almost
deprived Of its reward. Such " wreck Of matter"
has not occurred within the memory of man. In the
meantime, in this country, unsteady legislation and
high party excitement, which in the first instance aid
ed to produce the imitation, subsequently did much to
cause too sudden contraction of the currency
There were doubtless other causes combining with
those thus hastily skeched though il will doubtless
be admitted those named among the leading ones,
and they become of immense importance when they
are considered in connection with our future course
1t is quite clear that we have reached the minimum
of contraction in the currency since the issues of
the sound banks in all cases perfectly free from
any danger of suspension of specie payments, and
in many instances here for example, their circula-
ton is less than the specie in their vaults
Having then got back again to sound state of
none red affairs it is Of the first importance that great
care should be taken rot to take start on the
old road which led us into all difficulties, of
which there is very great danger, unless great pre-
caution is taken.
III mas always appeared ~ inoot sibSuiat that
fnanciers should have succeeded in throwing SO
much mystery around what is generally known by
the name of ''money matters" and the called
credit system.
Without going into any discussion upon this mat
ter which the wayfaring man may not comprehend,
let us look at il for one moment.
The necessity of trade and the exchange of com
modities calls for money, and the precious metals,
the articles least liable TO huctuation universally
adopted money but they do not exist in sufficient
amounts to represent every transaction, and in mod
ern times the increase of business has given rise to
credit.
This no doubt came from the latin word credo to
believe, hence a trusts his neighbor for
certain time because he believes when that time
comes he will pay him in money So long as this
is the only credit given, it will take of ITSELF
for though losses will be sometimes sustained yet
such disastrous results F., we have seen could have
arisen, had it not been for the creation Of banks,
where ten or twelve men became directors of
porate body-a creature Of the law-,hat com
nit all kinds of sin without - - r'sD'i'y
,,..---...- e.auo departure from first principles be-
cause banks, though they promise to pay money go
on promising, and finally never pay
No doubt can exist tat creating these souless cor
poraons has given rise most of the evils of bad
currency, and there is great to fear that so
long as they exist we shall never be free from the
danger of expansions and cont actions in the cur
rency.
But thanks TO President Tyler, are saved from
the creation Of the mammoth institution which would
have the whole control of the money matters of the
country and could at any time, expand and control
the currency at pleasure.
Now what else is necessary TO give us the most
favorable prospect of building up with tie best
chance Of avoiding the fluctuations in the value of
property and labor which have produced so much
ruin | answer without hestat on and satisfied that
every man, acquainted with the subject, will agree
with me- cessation to egislate at all on the subject
Of the currency, either by our State authorities or
by the General Government.
The fewer laws that passed the better on most
subjects. But what is imperiously demanded for the
best interests Of the public industry and trade Of the
country now is, fixed and settled laws II Congress
not TO meet again for six years, il would have
the happies, effects upon all the various branches Of
the nat, nal industry, while il would give new i'm
pulse TO our foreign commerce. The political egis-
lation-the President making laws, are the ruin of
every thing like business Of every nature and kind We
have ofthe most able hnsnciers in the country
an original opponent offs mammouth Bank at the head
of the Treasury lie will keep the public credit sound
and make great saving in annual expenditure.
President Tylcr's views are all well known Every
department Of the public service has been, and will
be, administered with fidelity and nothing can sub.
the best interests Of all more eectually than
by reelection Of our present worthy Chief Msss
trate. Keep things they arc, and from the
runous results which must inevitably follow from
the change Of policy incident to high state Of po-
litcal excitement, and thorough change in our
monetary and commercial system.
Nothing new here ! trust your friend Ciyisu