The independent press. (Abbeville C.H., S.C.) 1853-1860, 1857-10-09
Effect of Suspension.

The effect of suspension of specie payments
hv the banks is this: whatever the difference
of value may lie between specie and what IN.
der SYSTEM Of suspension, constitute current
fun'ls-n"tes and dcposites, TINT il. in the slls-
pended bnnks-to the extent Of that difference
the suspension causes an abatement upon all
debts falling due. 1t il n scheme much of the
same sort with those nhrogntions of debts of
which we read in the history Of the ancient
Republics. Ifsuspenled bank paper is at
discount of ten per cent, as compared with
specie. then every man who owes II hundred
dollars will he enabled to pay that debt with
ninety: and the greater the difference be.
tween paper and specie, the less will be oblig-
cal to day. it is easy, therefore, we sec why
those heavily in debt are always in favor Of
suspension bv the banks. though. after MI, it
ia only those VIII" owe more than they have
owing To them who arc really benefited by
such Il movement
For the same reason il is easy to see why
those States and cities wlIcl, have suspended
are always exceedingly anxious to involve in
The same suspension all the rest rf the coun-
try. 1t is nls" evident that the interest of
New York, asa whole. is decidedly, Mt all
times, against s,Spensio ion however convenient
it might be to certain deeply. indebted inl
vi'lna!s New York, rs being the centre of
trade. and furnishing large part Of the cap
ital for the extended mcrchantile operations
Of the whole country. is always, on the whole,
creditor city. New York always has more
money to receive from the country than to
pay to it. The payment made by New York
are to n very large extent made to foreign
countries. The foreign trade being mainly
carried on through New York this creates in
our accounts with the rest of the country an
immense balance In our favor. From the cir
cuinstances that SO heavy m amount Of our
payments is to be made abroad, md must be
made in specie, or it's squiwlcnt, New York,
i'll case OF suspension Of specie payments,
cnn never stand ON the same level with the
rest Of tho country. While tile rest of the
country gains NIL the benefits of the operation,
We suffer all the loss. Our. debts from the
:.eQuntry for foreign goods sold ifor consuInp
Won are paid to us at the rate Of 80 or 30, pcr-
laps 90 or 70 cents on the dollar, or oven less,
while we are obliged to pay for. those very
goods 100 cents on dollar. 1t is, therefore,
Ie plain interest Of New York, as il is also the
plain interest of Boston and Now Orleans, if
not of Philadelphia and Baltimore to main
thin the specie. value for the liquidation of
debts. The only argument in favor -of sus.
pending Specie payments. Is that it may en-
otherwise might stop and full. But it is Just
as well to give relief by way OF extension or
composition, ms to receive only a, port of a
debt duo as though it were the whole. Be-
sides, those debtors WHO are renlly insolvent
will fail just'a much under suspension of
specie payments as before Undoubtedly
there are many solvent houses TO which VERY
considerable indulgencs will bo needed to en-.
able tletn t0go on; but it is better d they
should have IL on a show of nssets, ,asd after
nm explanation with Their ,credi.orss .than to
have the same indulgence extended 1 1evsry-
body. solvent and ifsoleent aIike. ,g'isss'q ,g'sq