Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1843-01-19
ICoNNrNIcArrn.l

THE TIMES-STAY LAWS AND STATE DEBTS
The last few years have presented quite anomalous
aspect the political Economist. In period profound
peace throughout the civilized world, after the enjoyment
of longer political repoee than has occurred since
LIBERATED treaty of Westphaa, have Witnessed both
tins country and Europe period OF norinate speculation
and adventure followed by financial revulsion, almost
violent any which has been known spring of
the vcissitudes Of long peace has generally been
found favourable the regular and harmonious adjustment
OF the manifold economical relations Of society. During
such state, the great regulating law, OF supply and de-
mand, establishes equilibrium among all the departments
OF our and enterprise, and prevents those violent diso
cations of capital and labor always consequent periods
OF transition from war TO peace or the reverse Well,
then, may we be permitted 10 ask, why has country
been visited by disastrous reyusOn in period of UNI
versal peace' shall do the present occasion
than merely advert what consider the most prominent
causes. From 1919 year exceedingly analogous the
present, in consequence OF disastrous pressure
which fell upon the whole length and breadth OF land
up about 1881, all agricultural staples, with
included, were at exceedingly low prlces. With the
cepton OF three OF the first years OF this period du
mig which the transition taking place from high scale
OF prlces TO low one and when money was borrowed
rather for the purposes Of paying urgent debts and saving
property, than with view trade and profits-inercs
low and oanable capital abundant Never was mo
ney readily borrowed per than when corn
selling, IN Virginia, from 81 25 81 80 per bar
rel During this PERIOD therefore, prices did
pdy uctuate, equilibrium established throughout
all the departments OF Industry and in the absence of all
exciting causes the wild spirit OF speculation seemed al
most banshed land. The only exceptions this
rom temporary VacauOn IN 1879, consequent cot
speculation in Great Britain, and from the tam.
pering Of Government with the manufacturing interest
which produced some vicsldes in that business parcu
larry in 1878 Under such steady prices then, although
low, with scarcely any stimulus extravagant speculation
wonder that whole banking and monetary
system preserved in Il sound, wholesome condition
From 1891, however, up 1897, change over
the whole aspect of country Cotton the great staple
of the South, constituting at all times much the largest por.
ton OF exports began steadily 90 advance in price, and
after from or 10 90 the pound, remain
ed for several years the latter With tho of
cotton course all the lands of the cotton country adj
FaH the mFEHf Ng.r fhaVN -.A
likewise. This rise of caused the tide OF emgra-
ton set in very strongly from the grain and cattle grow
ing States to the Cotton States; and hence very
respondent rise in all agricultural products No country
long retains his present nature, possibly
the scOuge Of speculation and consequent revuson
der the circumstances here set forth This rage for
ation first commenced in the South West and reach
ed its uinous height; because land which every
county the chief item Of wealth, became there subec,
for speculation; which eventually unreason-
able price, from the double operation Of the rise in the price
OF cotton, and the tremendous emigration cotton
country, producing undue competition for lands
Prices remained at this high level sufficiently long change
the whole system OF habits, and to introduce style Of
luxurious living commensurate with this high remuneration
Of labor and capital In the time, certain causes Of
extraordinary character, at work calculated
and proong this speculative mania, which had fallen
upon our country like great moral epidemic. The
receive 20 for speculation generally found 10
sst in uuayonbc exchange with foreign countries
which produces demand upon the banks for specie and
admonishes hom Of any undue expansion Of the
ency, and imposes the Necessity Of general contraction
This was however, for long time prevented in country
BY the OngcOntinued high prices of cotton, carrying
exports, through several years amount
aud to system Of borrowing adopted almost simultaneous
y by all the States, for the purpose Of eccng their too
often chimenca, schemes Of internal improvement
hope may be pardoned for dwelling moment on the
operation OF the latter cause The assumption OF the Saes
debts by the General Government after the revolutionary
wur-the punctIa payment Of principal and interest on
national debt, after the second British waral con-
sprcd raise the credit Of Government both State
and Federal, not only level with that Of European
Governments, but greatly beyond them oil with the ex.
# De-
10 the world the extraordinary spectacle Of people who
had hons silly paid off every aring OF heavy debt con-
unccd during Two Under these circumstances, II
was 10 be expected that States should appear upon
the exchanges Of Europe borrowers of capital, they
would experience the utmost facility in obtaining it,.
Two circumstances conspired with the extraordinary nan
ciaI prosperity from 81 81, mike the States plunge
generally nost deeply in debt These circumstances
were the completion Of the great Erie Canal, and the
application Of steam 10 Ro-ways When We consider |
the violent Internal Improvement ters generated in a.
most every State Of the Unon by the Of the
Enc Canal, and the millions vt capital uscessy expended
scarcely know whether rejoice i'm the completion
NJ that great monument Of C.inons energy and geuou,
In the whole Union there is another line that
with 1t either 10 be- advantages Tor trade the f..
citcs for H. execution. The whole natiOn-the world
dolled by the results. All differences overlook
cd and mania for Internal Improvement seized a the
States. But the Canal fsrer might have raged without
cntuinR very disastrous results; b s not every
locality that fitted for cnnung, and there will always
be large portion Of the population to such inn
proycmcnts from the favorable position towards the
seems Of balance wheel in the system. But /
sUddeHg scarcely too strong phrase, the Rs-way
invention developed oil ice wandering powers 20 thc
ished world. The Bundeys and BrdRcwater, the Nc /.
Adams, Renncs and Tcilords had hardly ceased 90 live
their glory began 10 dim and their mighty works
dwndo in public estimation, by comparison with the stc
discovery which seemed realize the poets prayer for the
annihiaton Of space and Time Never invention bet
calculated 20 impose tc Imagination. The Msnches.
ter and Liverpool rOad acted the whole world the
New York Canal did on the States Of Unon and be-
ing built at D time when the whole world and particularly
the United States, enjoyed the unbounded apparent
prosperity, its influence he potent. Here q
species of improvement that would suit all Localities, both
the tide water and mounnn region. The old division Of
our Atlantic States into the internal and anti internal
Improvement parties in anuhilated. Every
locality wanted railroad, even the venerable old city Of
williamsburg with navgable 70 her very doors
either side and with the noble James flowing within four
miles the side, and the FORK equally the