The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1843-05-31
New YoRK, May 90, lS43.
parttnent.

New YoRK, May 90, l843
propose, in this letter to examine somewhat
further into the present state OF the ''money
matters" and trade, and hope To make what is
thought to be involved in some mys,eiy, appear
more clear.
The great complaint in all our commercial
cities appears to be that money is too plenty
There is not a sufficient demand for money &c
enable the capitalist TO loan itsOut so as to yield
six per cent interest. Wrong causes are as
signed for this, and it is mourned over as proof
of the depression Of the times, and that we are
not dong enough business.
1t is not unnatural for those who have large
sums Of money seeking investment, 10 be res
tive and uneasy, and TO believe that all is going
wrong, because they cannot accumulate wealth
(as they Think fast enough. Your overgrowr
rich capitalist is always of that opinion
"Hoards after boards, his rising raptures fill,
Yet still he signs, for boards are wanting STILL
Having their minds intent only upon their
own immediate affairs, moneyed men do moi
lake sufficiently enlarged views the subject
10 know that, after such hurricane as we have
had in the monetary affairs of the whole com
mercial world, time is required 10 got back again
to a reasonably successful state of business.
Now, in my simple view, the present aeun-
dance of money arises from obvious causes
and hail i, as the strongest proof we can have
that this country holds such position with al
others with whom we have dealings of any
kind, as enables Us profrably to enter into com
petition with them in The various pursuits in
which the use of capital is the PRINCIPAL requi-
site.
Accustomed as we have been in this city du
ring the late expansion Of the currency, to such
immense lmportalions of the manufactures Of
since the contraction has become so great in
this branch of our trade, as to create much an
noyance to those who have heretofore imported
cargoes almost out of number, and caused them
10 be spread abroad by Others, into our great in
terror, vastly beyond the actual wants of the
people. 1t is fact not generally known, that
almost the whole of this trade is in the hands OF
foreigners, who make their sales aud realize the
proceeds in ouI Atlantic cities by selling their
goods to our merchants, (called lamiliarly Job
bers,) who sell them out to the country. | do
not pretend TO close accuracy as TO the compare
tive number Of foreign houses in the importing
business in this city, but think | am perfectly
safe in the assertion that they constitute at least
three fourths Of those engaged in the importa-
ton of dry goods, and Of those who are Amer
cans, it may with truth be said, very large
portion Of their importing business i, on foreign
account
In high pressure times, upon the great Wing
banking system, this business, for a certain pc
Rod, answered n very good purpose to the for
eigners, who managed TO watch their concerns
very closely-secure their profits (olten very
arge) and then return 10 their own countries to
enjoy them.
am not about TO cast any censure upon those
foreigners who have honestly carried on this
traffic they had a perfect right to do so, and
unquestionably the facilities afforded to them,
connected, as they are, with The foreign manu-
facturers, will always enable them to do the
Indeed, at this very moment, such a thing as
an American house importing on its own &C.
count is "r,ra avis" There are some few.
but special few indeed.
have no prejudice against foreigners, and
were the trade useful to the country, as il has
heretofore been pushed, indeed, may say,
forced upon u.s. no one would derive more plea
sure than myself, from the great life and activity
it was wont TO spread throughout thi. goodly
city.
| comment upon it now for two purposes
First, to give ole reason for the plenty of mo-
ney and, secondly, to show that the diminu-
tion which has taken place in this trade is a ma
tional gain, rather than any loss TO the country.
When our importations, as above described,
were in full blast, our jobbers purchased largely
Of these goods, either at public or private sale
for which they gave promissoy note., which
were thrown into our banks aud discounted to
enable the importers to make remittances and
| assert it as fact beyond all controversy, that
the great falling off in these promissory notes,
and their not b ing offered for discount. is the
chief cause why our banks are so full of mo
ney. This is the secret of our having so much
specie flowing into the country; it comes here
in place Of dry goods. The great plenty OF mo-
ney is not because we are doing too little bus.
ness now, but because we have heretofore done
too much; and by contrasting what is now done
with what was done formerly, has The idea Of
our now doing too little business been spread
abroad
1t may be as well here to note another cause
of the great plenty Of money al this time viz
he great abundance Of it in Europe, where il
IAN now be borrowed on the best securities AT
one aud half to two and half per cent. per