Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1837-09-15

sive ISSUES oil bank paper, and by other IA.
cilIties for acquisition and enlargement of
credit At the commencement Of the year
1884, the banking capital of Che United
States, including that Of the national bank
then existing, amounted oaboui two hundred
millions Of dollars; the bank notes then in
circulation. to about nnety-fve millions -
and the loans and discounts OF the banks 10
three hundred and twenty-four millions
Between that time and the FIRST of January,
1886, being the last period to which aeon
rate accounts have been received, our bank
ing was increased to more than two hundred
and hly'one millions; our paper circulation
to more than one hundred and forty mill
ions; and the loans and discounts to more
than four hundred and fiityseven millions
TO this vast increase are to be added the
many millions of credit, acquired by means
OF foreign loans contracted by the States
and State institutions. and, above, ALL by the
lavish accommodations extended by foreign
dealers TO our merchants.
The consequences Of this redundancy Of
credit and Of the spirit Of reckless specula-
ton engendered by it. were. a foreign debt
contracted by our citizens, estimated, in
March last, at more than thirty millions Of
dollars; the extension TO traders in the inte-
rior of our country of credits for supplies
greatly beyond the wants of the people; the
investment OF thirty-nine and a half mil
lions OF dollars in reproductive public lands,
in the year 1876 aud 1886. whilst, in the
preceding year. the sales amounted to only
four and half millions; the creation of debts,
TO an almost countless amount, for real es-
tate in existing or anticipated cities aud vii
lagos, equally unproductive. and at a price
now seen to have been greatly dispropor-
tionate 10 their real value the expenditure
OF immense sums in Improvements, which,
in many cases. have been found 10 be ruin
ously improvident; the diversion to other
pursuits of much Of the labor that should
have been applied 10 agriculture. thereby
contributing TO the expenditure of large
sums in the importation of grain from Eu.
rope--an expenditure which. amounting, in
1884. TO about two hundred and fifty Ihous
and dollars, was, in the first two quarters Of
the present year. increased to more than
two millions of dollars and, finally, with
out enumerating other injurious results. the
rapid growth among all classes, and espe-
cially in our great commercial towns, oil
luxurious habits. founded too often on mere
" fancied wealth, and detrimental alike to
the industry. the resources. and the morals
of our people
! II was so impossible that such state o.
things could long continue, that the pros
pect Of revu!sion was present to the minds
Of considerate men before it actually came
None, however, had correctly anticipated its
severity. A concurrence Of circumstances
inadequate Of themselves to produce such
widespread and calamitous embarrassments
tended so greatly TO aggravate them, tina
they cannot be overlooked in considering
their history. Among these may be men
toned, as most prominent, the great loss o.
capital sustained by our commercial empo
rum 10 the fire OF December, 1854 loss
the effects of which were underraled al tn,
time because postponed for season by thu
great facilities OF credit then existing tn,
disturbing effects in our commercial cities o
the transfers OF the public moneys required
by the deposite law Of June. 1886; and the
measures adopted by the foreign creditors
of our merchants to reduce their debts, ant
to withdraw from the United States larg,
portion of our specie.
However unwilling any OF our citizen
NAV heretofore have been to assign TO thes
causes the chief fundamentally in produc
+ ing the present state of things. the develop
ments subsequently made, and the actua
: condition of other commercial countries
|, must, as it seems TO me. dispel all remain
r ing doubts upon the subject 1t has sine
, appeared that evils, similar to those sufiere
by ourselves, have been experienced u
! Great Britain, on the continent and. indeed
, Throughout the commercial world; and tina
: in other countries, as well as IN our own
!. they have been uniformly preceded by a
undue enlargement Of the boundaries 9
trade, prompted as with us, by unpreceden
4 ed expansions OF the systems OF creil
/ reference to the amount of banking capita
> and the issues Of paper credits put in circu
! lation in Great Britain. banks and IN oihe
!, WAYS, during the year 1884, 1885. and 1885,
: will show an augmentation Of the pape
currency there, as much disproporlioned I
!. the real wants Of trade as in the Unite
States. With this redundancy OF the pape
currency, there arose in that country also
= spirit of adventurous speculation, embracn
: the whole range of human enterprise. Al
: was profusely given to projected improve
mems large investments were made In To-
!. eirn stocks and loans; credits for good
!. were granted with unbounded lberallty
1 merchants in foreign countriesi and all IN
. means of acquiring and employing cred
|, were put in active operation, and extende
: in their effects to every department OF bus
r ness, and to every quarter of the globe
: The reaction was proportioned in its VIC