The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1837-09-16

ny Poiucd' CoiSluerdlDnSi anh differences
were prolonged which might Otherwise
have been determined by an appeal to facts.
by the exercise of reason, or hv mutual
concession 1t is, however, a cheering re-
lection, that circumstances Of this nature
cannot prevent a community so intelligent
as ours from ultimately arriving at correct
conclusions. Encouraged by the firm be-
Lief OF this truth, proceed to state NV
b, views, 50 far as may be necessary, to clear
understanding OF the remedies, feel it nv
duty to propose, and of the reasons by which
| have been led to recommend them.
The history of trade in the United States
for the last three or four wears, affords the
most convincing evidence that our present
condition is chiefly to be attributed to over
action in all the departments of business; an
over-actlon deriving, perhaps, its first i'm
pulses from antecedent causes, but stimula-
ted to It's destructive consequences BY ex-
cessive issues of bank paper, and by other
facilities for the acquisition and enlarge
ment OF credit. At the commencement of
the year 1884, the banking capital of the
United States, including that of the national
| bank then existing, amounted to about two
| hundred million of dollars; the bank nOtes
| then III circulation to about ninetv-fve mill
ions; and the loans and discounts of the
banks to three hundred and twentv-four mill
ions. Between that time and the first of
January, 1886, being the latest perod TO
which accurate accounts have been received
our banking capital was increased to more
than two hundred and fity-one millions:
our paper circulation to more than one hum
dred and forty millions, and the loans and
discounts to more than four hundred and
iitiy-seven millions. To this vast increase
are to be added the many millions of credit,
acquired by means of foreign loans. con-
tracted by the States and State institutions.
and, above all, by the lavish accommoda-
tons extended by foreign dealers to our
merchants.
The consequences of this redundancy of
credit, and of spirit of reckless speculation
engendered by it, were foreign debt con-
tracted by our citizens, estimated in March
last at more than thirty millions Of dollars;
the extension TO traders in the interior Of
our country Of credits for supplies greatly
beyond the wants of the people; the invest
ment of thirNnine and half millions of
dollars IN unproducive public lands, in the
years 1895 and 1896, whilst in the prece-
ding year the sales amounted to ONLY four
and half millions; the creation of debts, to
an almost countless amount, for real estate
in existing or anticipated cities and villages, |
equally unproductive, and at prices now
seen to have been greatly disproportionate
to the real value; the expenditure Of immense
sums in Improvements which, in many |
cases, have been found to be runouslv i'm |
provident; the diversion to other pursuits of
much ofthe labor that should have been an |
piled to agriculture, thereby contributing in |
the expenditure of large sums in the impor-
tatlon OF grain from European expenditure
which, amounting in 1894 TO about two
hundred and fifty thousand dollars, was.
IN the first two quarters Of the present year,
increased to more than two millions Of dob
lars; and finally, without enumerating other
injurious results, the rapid growth among
all classes, and especially in our great com
nerclal towns, Of luxurious habits, found
ed too often on merely fancied wealth, and
detrimental alike to the industry, the resour-
aos, and the morals Of our people.
1t was so impossible that such state of
things could long continue, that the prospect
)i revuslon was present to the minds ofI
,onsiderate men before it actually came.
None, however, had correctly anticipated |
It's severity. A concurrence of circumstan- |
;es inadequate ofthemselyes to produce such {
& calamitous embarrassments, q
ended so greatly to aggravate them, that {
hey cannot be overlooked in considering a
heir history. Among these may be men I
Toned, as most prominent, the great loss of a
capital sustained by our commercial empo- f
'ium in the fire of December, 1854 loss
he effects of which were underrated at the c
lme, because postponed for season by l.
he great facilities of credit then existing; c
he disturbing effects, in our commercial ?
titles, of the transfers of the public moneys S
'equired by the deposte law of June, 1899; a
md the measures adopted by the foreign v
,redtOrs of our merchants TO reduce their p
lebts, and TO withdraw from the United Il
States large portion of our specie.
However unwilling any Of our citizens a
nay heretofore have been TO assign to these v
,auses the chief instrumentality in produ- Il
ing the present state of things, the develop il
nens subsequently made, & the actual CON o
liton of other commercial countries, must, c