The daily union. [volume] (Washington [D.C.]) 1845-1857, 1845-12-31


golden opportunities to accomplish mighty results
and the people certainly do expect much from an
enlightened democratic administration and legisla-
ton. Yours, truly
EsBE.
------ NEW YoRK, Dec %, Is45.
Our money ard stock markets closed heavily on
Saturday, and at considerable reduction in the
prices of the earlier part of the week This falling
off in their value is To be attributed to the difficulty
of obtaining any loans whatever on stocks--money
having become very scarce, 50 much so that one
per cent. per month is readily given to have good
commercial bills discounted which have more than
sixty days to rum This sudden demand for mo-
ney has its origin in the fact that serious fears are
entertained by bankers, brokers, SPECTATORS Of all
kinds, and monopoliss in general, that constitu-
hona treasury, with specie clause, or some other
stringent one will be established during the present
session of Congress. Nothing can more concusively
prove the necessity of such measure than the sal
utary effect the idea oft has produced by put
ting stop to the wild and ruinous speculations
which have been going on in our markets. The
stock and flour markets, in particular, have been
bloated up by means of facilities from the banks,
without reason.
1t is not in this country alone, however, that
money panic exists England and France are both
in the same predicament. | extract the following
from letter dated Paris, November 26: "The pan.
ic to-day was great. In the share market nothing
could be DONE Shares were offered in all companies
at reduction Of prces, but purchasers not to
be had. No other is assigned for this new de-
preston but the scarcity Of money in Paris, and the
orders for sales from the provinces, where money is
said to be more scarce even than here" Later I'D.
vices give still more disheartenng accounts.
In London, the pressure on the money market has
also been severe, and still continues to be so. Con-
soils were, when the Acada left, lower by per
cent. than they were at the opening OF the year.
London correspondent writes thus: "The market is
chiefly affected by the necessity Of making good the
deposites where bills are intended to be applied for
The foreign stocks are entirely neglected, and what
ever little speculation is ahoat, is directed to the con-
soils market"
1t will, think be pretty plain, from the above
extracts, that mania for getting rich with an cleo
tro-magnclic velocity has induced crazy specula-
tons in Europe to the ruin of thousands and which,
to certain extent have been practised here. In
France, the Bank of France stopped the mania; in
England, the Bank Of England-boih of them by
eeasng to discount speculative paper Of any kind,
stitutional treasury BILL although not yet in exist
cnce, has had the same happy effect by causing the
banks not only to cease loanng on stocks, but to
call in the loans already out.
Legitimate commerce, to whatever extent it may
be carried, benefits every nation engaged therein;
while wild specuations are injurious, because they
abstract portion of the capital from its proper
channel, and thereby cripple both commerce and
tade for il is impossible for them to flourish for any
length Of time without they are based upon pro-
wild kind can, however, long exist indeed, they
cannot have being, without paper currency be
plentiful. 1t is true that in England the paper cur
rency has been greatly contracted; but credit, by
means of domestic bills Of exchange, has increased.
These bills, by means of having a bank endorse
ment on them, while they could be discounted at
low rate, passed nearly currently bank notes.
Now, however, the interest on those that can COM
mand discount, which are comparatively few is
nearly doubled; distress prevails and credit perishes
he kao nI,,na tt,N n. -
France.
have said that every nation ought to have spe-
Gle capital proportonate to her trade and commerce.
This is as true Of nations as it is Of individuals If
an individual trades too much beyond his capital,
he is almost sure to get into pecuniary difficulties
The same is the with nations. It behooves
every nation, therefore, to adopt such measures as
will enable her TO keep proper amount of specie in
it. Too large paper currency is sure to drive spe-
Gle out of any nation, and is therefore particu
larly to be guarded against. No measure can so
effsctually guard against il in this country as
constitutional treasury with specie clause.
The amount Of gold and silver in circulation in
France in 1766, as stated by Neckar, was 81 mil
lions sterling In England, about the same time,
Mr.. Chalmers, from the returns of the English mint
states that the quantity of money in England in
GLIDING Scotland and Ireland, TO be 20 millions
sterling. These statements make il apparent that
France possessed more than ~ millions sterling
more than the national quantity Of England. This
may easily DC accounted Tor. ihfe ndS no paper
currency IN France before The reroiution; and he
whoie revenue, icich nfariy irenfyour millions
sterling, collected rpon gold and siiper. The
nue., il will be seen, then about one-fourth Of
her circulation, which also about the same pro-
portion the revenue of England bore TO her circula
ton prior to the reign Of King William III--that is
before the establishment Of paper currency; for
her circulation in gold and silver was then 20 mil
lions, and her revenue about millions.
II seems, then, that from the period OF the COM
mencement Of the reign Of King William to the
year 1856, increase in the gold aud silver capital
had taken place, while national debt by means of
a paper currency had been created, which has now
swollen to such an enormous amount. that it presses
like an incubus upon the energies and industry Of
the people. Such state of things must sooner or
later end in revolution. Beware, therefore, of q
too expanded paper currency.