Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1858-08-26


scarcity of money in the oountry-to permit the
delinquent Banks to make great speculstions by
their bad faith to the country and that too at the
expense Of the more honest Banks, and to rob the
people Of the five per cent. which they had SOL
emnly promised to pay themin case they suspen-
ded as they have done. e.N
In the.last place. let Us enquire If the price Of
cotton advanced as necessary consequenceof Of the
suspension OF the Act of 1s4o. We have seen that
the Banks contracted their circulation more than
100000 by the lst Of January last: The con-
traction which followed up to the first of Februa-
ry was considerably increased. According to my
recollection, it was more than -three.fold greater
than that of the preceding month. I regret !
have not the Bank statement. for that month. be-
fore me, so tina. could givethe figures. Upto Jaiy
last II had reached about S1,o5o,(00: Now II
is true that cotton advanced about tworcents per
pound in January, and not until Ianuary.s II the
advance is to be attributed.to the suspension Of
the law Of 1910, why was not this result effected
in December? By recurring back to the state
L
be seen that the prices Of cotton was at lis lowest
range on or about the first of January, and that it
advanced about one cent by the middle Of that
month. But on what principle can the inference
be drawn that the advance in the price was con-
sequence Of relieving the suspended Banks?-
Clearly on the snppostion only, that the Banks
had furnished the means Of purchasing it; the
want Of which it is slledged, and very properly
too, had depressed 1t so'low in November prece-
ding. By the sworn statements Of the Banks
themselves, they show us that they have not con-
tributed, but actually lessened the means neces-
sary for the purchase Of. cotton. The pretence,
therefore, that the Banks, by increased accommo-
dstions have been instrumental 10 enhancing the
price, is simply idle. I. Is sometimes suggested
by enthusiastic advocates Of the measure, that
the moral effect and influence Of the Act was to
restore confidence to the commercial world, aud
thereby to;raise the prices Of produce. Suppose
then 1t be not ascribed to any material aid Afford
ed by the Banks, but to some sort Of conjuration
or talismanic efficacy inherent In the suspension
Of the Act of ls40 per sc. Then the hypothesis
is negatved by the consequences which followed,
not having been in consonance With the nature of
such cause; for assuming such . result to be
possible, then the effects and influences on the cot
ton market wouldhaye developed themselves imme-
diately after the enactment Of the Law, which xss
not the case as it will be remembered that cotton
continued to decline until the first of January sf-
terwards, when it attained its lowest price. Iplp
event, therefore, con the advancement Of the price
of cotton be traced, directly or indirectly" to
the Act of last December relieving the suspended
Banks from the payment Of the FIVE per cent. on
! their circulation. .,s....... ..
There are other important points Of view in
which this Act of the Legislature might be shown
up as highly Questionable and impolitic, bot
for the present must forbear. ~ =,
I have thus given in plain manner, my opinions
frankly on this ve1ed subiect-free from extrava-
CANT representations or hyperbolical diction. Ny
propositions have been based upon the most relia-
bic statistics could on short notice procure, and
which think are correct; and hope have sue
ceeded in discharging this duty without seeming
to reflect or cast any imputa,ion upon any one, as
my purpose has been simply to attain and expose
the truth.
Very respectfully,
Your obedent servant,
EDWARD MOORE.