American union. [volume] (Morgantown, Va. [W. Va.]) 1855-1859, 1857-12-25

what result is now seen. But yester
day the demand was for money to be.
gin new business and undertake new
enterprises of speculation and any SOFT
of medium would do: to-day tho de.
mand is stronger still for mouey, but i,
is for real money. and no other will do,
To pay off old debts and settle old trans
actions. The difference between the
two demands will now be seen. and all
will know whether guild has drprecia'
ted or not in value, and whesher specie
can be long or far departed tiom as a
standard"
The message next proceeds toan ex-
animation of ''the condition Of the banks
of the United States" on the 1st Janu-
ary last, "in order to judge justly of the
course pursued by our own banks in the
present revulsions." "There are" il
says, 'thirteen principal centres OF
trade. controlling the financial and
commercial relations in the United
States. Two are primary national
cen,res--the one the importing, New
York; and ,he other the csPorting. New
Orleans. Tho others are but satellites
and secondary. In the North east, Bos
ton, Philadelphia, Baltimore; in the
Southeast. Charleston, Savannah, Mo-
bile, in the Northwest. Cincinnati. Chi,
cogo, Buffalo, ST. Eouis; on the Pacific,
San Francisco" THE four great Cen.
tral, Middle, Atlantic and Ohio front,
slave'holding, tobacco.groMihg, bread
stuff producing. agricultural, grazing,
and mineral yielding States, Virginia,
North Carolina. Tennessee and Ken.
lucky, haze no centres Of their oDn, bwt
are independent on centres around them i,
North, South, East and Vest" The
Governor proposes to geneialize the
facts" in MIR. GUTuRIE's report, sin or.
der to show the operation of these CEN
tres" financially and commercially. In
this task he deals largely in tabular
statements which fill many pages.--
| These we shall omit and come at ouce
to the result. "The whole com m2arisVn
shows" concludes the Governor:
1st. That the capital employed in
trade flows to the centres.
I'd. That it flows there in spite OF
/ the balance Of trade.
Sd. That this very fact of balance
Of trade in favor of the States produced
| the raw material against the CONNER
ciaI centres, instead Of being strength
is weakness, in times of a money pres
sure.
| 4lh. And. above ell, that our best De
fence against the tax nfpaying exchange
to those centres all around us, and
against the Danger and dsmay of hav
ing our surplus caugh, under The deac
fall of hard times in centres outside q
our control,"is TO buiM up ceutre o
trade in our own linn it's" How such {
centre is TO be built up is To be showr
under The head of STATE Improvement.
- which ATE the greatest ultimate TO
lief and defence"
"Tbe surplus capital will flow to The
centre, because commerce is there mos
active; the dollar lliere can be turned
over oiteuest and make the most profit
md This in spite Of tie balance of trad,
or the rate Of interest on Tie use ofmon
ey. No matter what is the rate of in
terest in New Yoik, bill of exchapge
OIL that city will draw premium from
any place on this continent, because ii 1!
tie centre Of hade." Nor will the bal
ance of trade against the centre draw
the money away; con the contrary, d
ieaUeS the money there" This is illus
trated by the late instance of our tobac
conists. Their profits, making bal
sncc of trade in our favor, were all lef
in New York III the shape Of debts due
from their factors. They were merely
represented here by bills of exchange
on their factors, held by our banks. aud
"too much rated as specie. funds." Thus
the very means counted on by the banks
as specie, when the pressure came turn
ed into protested paper, leaving The spo
cio real ly at the centre form which the
balance was due.
Thus, when a money crisis comes
tie baiaxce Of trade is found an III,
hands Of The centres IF rade, and III,
notes Of 0ur hunks IN Me lands Ofttei,
, brokerS. These brokers, having notice
first of the suspension in the centres
start earliest in the race for specie -
Having already the specie representa- d
by the protested bills on the centres
their object ie to secure also the specie
for our bank notes issued in the pur
chase of those very bills. This the sus
pension Of our banks prevented then
from doing, aud, the Governor vehe
mently insists, did so rightly. We
ought "to have held on at all events tc
what specie we had left" For this rea
son, when our banks first suspended
he calmly awaited tbotesnlt, and declin
ed TO issue proclamation Prohibiting
the receipt Of their notes in payment ot
the public dues. The deposit bank
refused to receive them yet, deemiug
the law to be pcrmissive aud not impct
ativo to prohibit their receipt he still
declined TO issue the proclamation.
| In relation to The confse of the sus.