Cooper's Clarksburg register. [volume] (Clarksburg, Va. [W. Va.]) 1851-1861, 1857-12-25

i ths rate Of intersst on fts use d, money
t matter " hat is the rate ofsintersst in Ney
> York g; bill Of exchange on that cit,
, will draw q premium from any place ol
r this continent. 6ecaprs IS tie centre q
, trade. Money is more valuable fthsr,
than, else where. Some suppose that mo
= uey is drawn from Virginia, for example
Y because the rate Of interest there is seven
] and our rateais sizr. siizr III That be cause
Il why does San tFfancisco. where tie inter
est Is Sc per annum. now draw the mo.
ney from the seven id New York? Or
u the contrary. we know thatIa bill at Sar
q Francisco on New York will always com:
I mand about two per cent premi6m. !. bni :
To come neater-the banking interest
in Ohio is from l2 to Is PEI cent. d Why
don that rate draw from New York? IL
Is 6ecaase Nev FORK IS tie centre. tsAere
importdttons are made. t0ders" supplies are
obtained. a0hers money IS most ia den,ond. :
SO. some suppose that the balance OF
trade against the centre, will draw money
away from the centre. On The, contrary,
Il leaves the money there. Thus. when a
merchant. or producer here az Richmond
sends $4,000 worth Of -four or tobacco to
New York. and purchases only one
thousand dollars worth of merchandise,
he has a balance ofcourse in his favor Of
s. 600. What does he do with that bal
ance? Why, ii he has a head on his
shoulders ct to manage money, he will
leave it there and not bring it home with
him !; because when he gets here he can
obtain premium from bank or bank
er here for bill of exchange on New
York-a thing Which is too mach rated as
specie funds" The bank here, which
buys in ordinary times. gets its full equiv
alent. But it issues notes to buy it,,
which have to be redeemed. And when
pressure comes the notes are presented
for redemption here; and to get the spe
Gle to redeem with. the bank has TO pre-
sent the bill Of exchange in New York !:
and when it goes there in crisis. ittinds
that the drawee has suspended or failed.
At all events, the very means it counted
on as specie, turns into protested paper
the circumference.
again-I take the trade OF the Valley
and West Of Virginia. Ailegitimate bus
mess certainly there is Of our people to
raise or purchase livestock for the mar
ket Of Baltimore. Philadelphia and York
A drover or grazier goes to the Bank Of
the Valley Of Rockingham, and borrows
S5,0 600 in their notes to purchase cattle
at 80 days. By the timeiiis note has ma.
tured in bank, he has, his cattle in market
at Baltimore. say. and has sold them forc
Sc 900. He has made balance of $is+I
600 for himself and Baltimore owes the
Sc, 900. He gives the bank Of whichsshe
borrowed draft or check on Baltimore
for the $4,000. and pays hisdnote Of s.
900 dollars and take" the notes of the
bank for the balance of one ethousand dol;
lars. And by this time the notes which
our banks issued have gone to Baltimore
to PAY DISCOUNT for supplies, and falrinto
the hands Of brokers there. And just
then comes the crisis Of a suspension of !
specie payment. The banks of Baltimore
suspend-the balance of trade is found.in
their hands, and the notes of our banks
in the hands Of the brokers. The latter
have notice first Of suspension, and start
earliest in the race for specie. Seeieg7I
them coming, the yhetne cattle money
senda ASlB has been left there-and it
finds the door shut in the face ofthe dro-
yer and grazier's bills. Shall it allow the
centres brokers to get all the specie too
for the notes which were issued for these
very bills ! No. say 1. No, say justice
and fair dealing. No. saysself-preserva.
ton. No. will say our hard " orking dro.
viers and graziers. No. our tax. payers
and note holders at home. No. said our
country banks. They suspended and did
right. II was for the protection Of our
own people whose means were all tied up
10 the bags Of the centre Of trade. When
those bags are opened again. and they will
let out our balance due US and accumu-
lated there, then We will redeem our notes
aod6 90 6d6ssSysi7 6dsSs he s3ecie full handed to do
own merchants and traders and mec6a6fos
and tax payers and drovers and gtaz1ers
and labolersl No. the provincialized
States -proyincialized because they have
no centres Of trade-have suffered this
swindIe long enough Of getting ell their
means first into the hands Of the debtor
and then calling upon them
10 paw in specie. They in reason ought
to to be be- the Est 10 suspend. For though as
between individuals, "the lender holds
the borrower by the purse strings. YET
as between nations and communities IL Is
the reverse. The people who hold all the
balances and accumulated funds OF the
rest, hold them by the purse strings. 1t
is no truism. in time of suspension. to say
that, the g balance holders hold the bal
ances'' in such times We did right to
hold on at all events to what specie we
had left for this reason. when the hrst OF
our banks suspended. calmly awaited
the result aud declined to issue procla>
nation prohibiting the reception Of their
.o,a. IN navment Of nublic dues. The de-