The Democratic Whig. [volume] (Columbus, Miss.) 1842-1843, 1843-02-16
4 TIC WIG.
ron PRESIDENT or THE UNITED STATES
HENRY CHA ".
OFKENTUCKY.
ALABAMA MONEY.

We have lately returned from Mobile
where we were during high state of excite
ment in regard to ALABAMA MONEY. In The
course Of two days, Exchange rose from q
per cent. to 40 or As, and in two days more il
| fell to about Is per cent. When we left Mo-
bile it ranged from Is to 80 per cent. We
endeavored to collect from the best sources,t the
NEST accurate information inregavd 10 its pros
Fpective condition, but could arrive at no salts
factory conclusion on the subject. There
was great diversity Of opinion, and there
seemed to be a feverish and anxious state OF
the public mind, as to the rate at which Ala.
bama money would ultimately settle down.
Some insisted that the rapid fluctuations which
had been lately experienced, were caused by
temporary panic, Of which the brokers had
availed themselves to depreciate the money
below its intrinsic value, that the condition of
the banks. with about five millions of indebt-
edness, and three times that amount due to
them, out of which eight millions are undoubt-
eddy good, does not justify the slightest unea-
siness in regard to the ultimate solvency Of
the institutions; but they maintain that as soon
as the temporary demand for exchange is sup
piled, and The present alarm subsidies, and
when the cotton crops, which have been pre-
vented from being brought to market by the
state of the rivers, are brought down, that
Alabama money.will resume something like its
nominal value.
On the other hand, others, equally entitled
to respect for their opinions contend that
insteod of becoming better, Alabama money
will gradually get worse, until it arrives at
about so or go per cent. discount, at which, it
will probably remain permanently; that all ex-
perience teaches the fallacy of placing much
reliance upon the reported condition of banks,
or the availability of their assets, and that the
only purpose for which Alabama money is
wanted, is to discharge debts due the banks,
and, as those, who may want it for that pur.
pose, constitute comparatively, but small
portion of the community, this demand for it
will not cause it to continue a circulating
medium, especially as it can at all times be
purchased as an article of merchandise at
midst Of these contradictory opinions meet
ing of the merchants was held, at which they
resolved not to receive Alabama money after
the 9th instant.
Immediately after this public action on the
subject, the money which it was designed to
sxpel from circulation as a medium ofexchange
-ose in value, and those, who had joined in the
movement. were compelled virtually to retrace
heir steps. This comprises a correct state
nent OF the agitation and excitement which
Prevailed in Mobile on the subject of the cur
ency.
It is question OF no little Importance to our
'iantere, who sell at that market, and we have
therefore, been more minute on the subject |
han we otherwise would have been. Cotton
an be readily sold in Mobile for either good |
unds or Alabama money, but at difference
n price corresponding with the difference in
The safest plan certainly, for our planters to
ursue, is to require good funds; but, they can
btain much higher price for their cotton in
Alabama money. the question which they have
o determine, is between certainty and spec
Lzation.