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Total, Jan., 1843, $198,392,152 $27,814,178 $47,766,048 $40,390,962 Deduct Illinois and Ala

bama banks in liqui 11,634,432 1,606,359 7,441,869 1,271,089 dation,

186,757,720 26,207,819 40,324,179 39,119,873 Total, Jan., 1840, 295,300,476 25,341,151 68,598,620 49,279,697

1839, 313,586,784 29,654,863 85,546,120 56,605,653 These figures show an immense in- are discounts appropriated to the liquicrease in the proportion of specie to dation of former loans. Hence, all the circulation. Deducting the notes on facilities which the public now derive hand, the outstanding circulation of from the issues of sixteen banks, is the these banks in 1839 was $69,075,859, fancied convenience of using their paper and they held nearly $30,000,000 in for currency instead of the specie in the specie. At this time the notes out- vaults, which is more than counterbastanding are in the neighborhood of lanced by the evils attending it. The $12,000,000, leaving the specie on nett circulation of all the banks of the hand very nearly equivalent to the United States, in 1839, was $107,paper which it represents. Indeed, at 798,029, and is now not far from the leading points, as New York, New $40,000,000, being a reducti n of over Orleans, and Maryland, whence capital $67,000,000 ; of which $13,000,000 is distributed for the purchase of pro were the issues of broken banks, and duce, the specie far exceeds the paper are depreciated to an average level outsianding. The deposits for the with those of the late National Bank most part cannot be called currency, 50 per cent., involving a loss of because, although they form a means of $21,000,000 to the public, in three liquidating debts due the banks, they years, by the use of paper money for a are not generally available for the pure currency. The following will show chase of goods. They form, in most the nett circulation and specie held by cases, but another form of loans, as they the banks of the leading Stales : CIRCULATION, NOTES ON HAND, NETT CIRCULATION, AND SPECIE, OF SEVERAL OF THE


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Hence, it appears that the currency at scrupulous political party, to make the the influential points is now below the distresses and moral laxity of the peospecie standard ; that is, the distrust oc- ple a stepping-stone to power. The casioned by the continual fall of prices bankrupt law offered a relief to indivifrom the high fictitious level of the duals, ihe distribution law to Siates, paper system has, from the natural and a new inflation of paper, through indisposition of people to operate in the medium of a bank, tempted broken falling markets, caused money to accu- speculators. Thus, one by one, all mulate in the banks on deposit until those dependences of the capitalist, its owners shall have become satisfied legal and moral, for the security of his that prices are really at their lowest loans, were removed, and the general points. This is one of the greatest result is an utter loss of credit by evils of paper. It promotes overtrad- banks, individuals, States, and Federal ing by exciting people to operate in the Government; which state of things is apparent rapid rise of prices during an enhanced by the constant aitempis in expansion, and consequenily discoura- most of the States to pass what are ges them from moving when prices called “stay laws.". The tendency of and values are falling again back to these is to prevent the sale of property their natural level. The result is, that under execution for the benefit of the in one case they fall as much below creditor, unless at rates governed by their real value as in the other case arbitrary valuations, which place them they rise above it; being once down, far above the actual value. Such laws returning activity restores them to a have been passed in Illinois and Missound position gradually but firmly. souri, and Other States; their effect is This result is now being brought about. to deprive the poor creditor of justice, The moving principle is commercial and drive the rich one into the United confidence in the probability of realiz- States Court at ruinous expense. Coning profits from investments at present sequently, there can be no basis for prices for cash. There is as yet no credit. Those laws are the direct consymptom of a return to large credit sequence of the paper system; because, operations, because, during the last under the inflation of former years, few years, those great landmarks of large quantities of real estate changed commercial confidence which in former hands at enormous money prices; and, years formed the guide and the security to sell that properly now, on mortgages of the creditor, have been swept away or for mercantile debts, will ruin the and perished under the demoralizing holder. Without a paper inflation, consequences of paper speculations. fluctuations in the value of properly so All those moral influences which en- great as to produce such results, could sured to the commercial creditor the never have taken place. Hence it is safety of his claim, have been necessa- that relief laws are most prevalent rily subverted by unwise legislation. where banks have flourished most. Legalizing the suspension of the banks All these attempts at “relief," as it is as matter of expediency, after the first called, are working a cure for the evils shock of necessity passed away, sapped out of which they sprung, by destroythe foundation of the moral obligation ing credit, and therefore preventing of contracts. Exonerating associations the proposed remedies, which are based of men from their immediate liabilities upon fresh borrowing and credit, from soon paved the way for “stay laws” to taking effect. The disasters of the protect individuals from the claims of late National Bank, and the paper systheir creditors. When so much was tem generally, have made it impossible obtained, men in comparatively good to fill up subscriptions to a new Nastanding did not scruple to avail them- tional Bank. Hence, Daniel Webster selves of the usury laws, to evade con- declares such an institution “ obsolete." tracts into which they not only volun- In this state of affairs it is evident tarily but thankfully entered. Pariy that there is but one course to adopt, spirit countenancing ihese proceedings, that is, to go with the current of events. the principle of the usury laws was Instead of keeping alive the feeling of applied to the public debts of the distrust, by constantly projecting new States, and repudiation boldly avowed. issues of paper, in the shape of money, The prevalence of this disposition to under pretence of relieving the Naprotect debtors at the expense of credit- tional Treasury, like the recenily deors was seized upon by a bold and un- feated Exchequer,-or of stock, like the

dead project for assumption of ernment, will give activity to the predebts," instead of paying them,-re- cious metals, and infinitely promote course should be had to economy in the the animation of commerce. The first instance to bring down the expen- finances of the Federal Government ses to the revenue, and then returning are, without doubt, in a most lamentato the Sub-Treasury plan of the late ad- ble condition; the current expendiministration, the principle of which is tures during the past year having been to require prompt payment in the con- near $5,000,000 in excess of the curstitutional currency for all dues to the rent receipts, and the estimates of the government, and as promptly disburs. Secretary for the year 1843 make the ing it to the government creditors. currentiexpenditures exceed the receipts The great features of future trade will by $7,300,000. The following is a table be cash payments and prompt activity of the actual amounts for 1842, and the of all industrial products. The collec- estimates of the Secretary for 1843, tion and disbursement of $20,000,000 according to his Report, dated 9th per annum in specie by the Federal Gov. February, 1843: REVENUE AND EXPENDITURES OF UNITED STATES FOR 1842, AND ESTIMATE FOR 1843.

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$35,308,634 $25,335,163 The Secretary has here estimated the high tariff, inasmuch

as the the customs of 1843 at very near whole falling off in the imports for those of the last year, derived from the the year, took place after the expiraimports of that year. The result is, tion of the compromise act. The Sec, as we have stated, that the deficiency retary ascribes the decline to general of means will be near 50 per cent. operating causes upon the whole busigreater for the coming year, than for ness of the country, yet does not exthe last ; and at the close of the year, plain why those causes should take or after January, 1844, over $5,000,000 effect only with the operation of an of the Government stock falls due and oppressive tariff. For the first six must be paid, or renewed at a higher months of 1842, under the compromise rate of interest, like the pote of a tariff, the imports exceeded those of the broken speculator in a banking institu- same period in 1840, showing a dispotion. This state of affairs has evi- sition in the general markets to recover. dently been mainly brought about by The comparison is as follows:

Ist quarter.

2d quarter.

3d quarter.

4th quarter.


Imports, 1840,


28,934,302 22,237,180 28,217,025 22,700,330 $102,088,837 32,931,955 26,111,101 17,197,898 11 000,000 87,240,954

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3,997,653 3,873,921

11,019,127 11,700,330


During the last six months, cash du. chase, in consequence of being deties were imposed, and at protective prived of a market for the proceeds of rates during the last four. If general their labor. We may illustrate this causes produced the falling ofi" in im- view by one article. The production ports, why were not those causes in of flour in the United States has been operation in the first six months? The estimated at twenty-two million bar. importations for the first six months of rels; the export in 1840, which was a 1842, large as they were, were not year of the lowest prices for flour, was greater than were paid by the export near (wo million barrels, valued at of produce in return; a fact abundanıly $10,000,000; that quantity may be proved by the rate of foreign exchange, assumed as the surplus production, bewhich in July was already 3 per cent. cause, in the following year, the prices below par, and has gradually fallen ranged $1,50 per barrel higher, showsince then, until specie is imported in ing that the surplus had been removed immense quantities. In that period, by export. At the present time, prices the imports of foreign goods exceeded range from $2,60 per barrel, in Cincinthose of the same period in 1840, by nati, to $4,50 on the seaboard. At $7,800,000, and yet the cash balance these rates, flour yields no surplus to was in favor of this country; showing, the producer ; $2.60 is equal to 50 that, notwithstanding the pecuniary cents per bushel for wheat, which in distress in England was then very England, is worth $1,12. The cost of great, interest being at 6 per cent., and production and transport to market having since fallen to 11 and 2 per cent., make up the whole price, and leave no that the increased imports into this margin for the purchase of goods. The country were paid for by enhanced average price in the United States, purchases of domestic goods and pro- under these circumstances, is $4,00 duce. This brings us to the nexi as- per barrel, making the crop worth sertion of the Secretary, which is, that $88,000,000. the falling off in imports is not justly If, now, foreign goods are taken in “chargeable to the existing tariff

, be payment for two millions of barrels, cause the prices of imported goods ihereby raising the money price of the have, in common with others, generally balance $1,50 per barrel, as in 1841, fallen since its passage."

the crop will be worth $120,000,000, This seems to be the very perversity of instead of $88,000,000; hence there blindness. The productions of this coun- will be a margin of $32,000,000, to try are immense in volume, but com- appropriate to the purchase of domesmand money prices so low as to yield no tic and imported goods, which must surplus above the cost of production, consequently rise in price. On the for two reasons, viz.; the dearness of contrary, if, as now, under the present the currency, and the extent of the most absurd tariff, foreign goods are surplus. The former reason was cor- prohibited from coming in exchange recting itself during the first six months for the surplus 2,000,000 barrels, the of the year, even when the imports markets on the border continue to be exceeded those of the last half of the glutted; the price remains so low, that year, by $31,000,000, or 110 per cent. western flour cannot be brought down The only way by which the surplus may and pay the expenses. Hence, there is be disposed of, is by taking foreign goods nothing left to buy goods, or even to in exchange. Relieving the market pay taxes at home; ihe goods cannot of the surplus raises the money prices be sold at any price, and taxes cannot of the remainder until they afford a be met. The Federal Government closes profit, which profit is applied to the its revenue, and the States repudiate. purchase of goods. If the exportation These are some of the national evils of that surplus is prevented by the ex. which grow out of the struggles of a clusion of foreign goods in exchange, political party to sustain power, by prices are sunk so low, that the pro- combining small pecuniary interests, ducers are disabled from buying at all. through hope of obtaining exclusive The demand for goods so cui off causes privileges at the expense of the people their prices to fall

. The authors of at large. the whole evil then appeal to the fall The Secretary in his estimates puts in foreign goods, as evidence that they the land receipis at $2,500,000. This are not wanted, when it only arises estimate appears greatly too large under from the inability of consumers to pur- the circumstances, being nearly double

that of each of the last two years, ale and mismanaged in that time. In order though it must be taken into conside- to estimate the state of affairs we may ration that, owing to the strife about look back at the land operations in distribution, the lands as a resource for each state for the last ten years, as revenue have been greatly neglected follows:SALES OF PUBLIC LAND IN EACH OF THE UNITED STATES, FROM 1833 to 1840,


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From this, it appears that the num- tion of these States, at three periods, ber of acres sold in the last two years, with the aggregate acres sold in ten was 1,660,000 only. In 1835-6, the years, from 1833 to 1842, the quantity number of acres sold was 32,630,000. of land actually sold to settlers can be If we now take a table of the popula. estimated as follows:


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1,246,750 2,342,478 4,531,514 59,041.261 Acres sold to

17,213.000 10,110,468 51,620,132 It appears that up to 1820 there were persons, and the land sales were 51,sold of public lands 17,213,000 acres, 000,000 acres, or about 25 acres to each on which was settled a population of individual. Assuming the number of 1,246,750 people, or about 16 acres to acres to each person actually settled to each inhabitant. During the ten years have been the same as in the previous from 1820 to 1830, there were sold ten years, it would give 23,000,000 10,000,000 acres only, and the popula- settled against 59,000,000 acres sold by tion increased 1,100,000, or about 10 the Federal government, leaving 36,acres to each person. From 1830 to 000,000 acres in the hands of the States 1840 the population increased 2,200,000 and speculators, to be resold in compe

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