Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-09-11

tulnously lmptOVlucnlj lhe diversion TO other
pursuits OF much of the labor that should have
been applied to agriculture, thereby contrihut.
ing TO the expenditure of large sums in the
importation Of grain 4 ON Europe, AN expen.
diture which, amounting in 1884 TO about two
hundred and fifty thousand dollars, was, in the
first two quarters Of the present year, increas-
ed to more than two millions of dollars; and.
finally, without onumeraing other injurious
results, the rapid growth, among all classes,
and especially in our great commercial towns,
of luxurious habits, founded too often on mere.
Iy lanclcd wealth, and detrimental alike 10 the
industry, the resources and the morals of our
people.
II was so impossible that such n state of
things could long continue, that the prospect
OF rcvulsion was present 10 the minds of con-
sidorate men before it actually come. None,
however, had correctly anticipated its severity.
A concurrence Of circumstances. inadequate
of themselves, 10 produce such wide. spread &.
calamitous onbarrassments, tended so greatly
TO aggravato them, cannot DO overlooked in
considering their history. Among these NAV
DC mentioned, as most prominent, the great
loss, of capital sustained by our commercial
emPusJum in The fire oil December, 1854
loss, the effects Of which were moderated at
the time, because postponed for a season, by
the great facilities Of credit then existing; the
disturbing effects, in our commercial cities, of
the transfers Of the public moneys required by
the doposto law Of June, 1886, and the meas.
uros adopted by the foreign creditors of our
merchants TO reduce their debts, and 10 with
draw from the United States large amount of
our specie.
However unwilling any portion Of our cit
liens may heretofore have been TO assign to
these causes the chiefinstrumentality in produ-
cling the present, state Of things, the develope-
ments subsequently made, and the actual con-
dition of other COMMERCIAL countries, must, as
it seems TO me, 6ispcl all remaining doubts
upon the subject, 1t has since appeared that
evils similar 10 those suffered by ourselves
have been experienced in in Great Britain, on
the continent, and; Indeed, throughout the
commercial world; and thdt,in other countries
as well as our own, they have been uniformly
preceded by an undue enlargement of the
boundaries oftrade, prompted, as with us, BY
unprecedented expansions of the system OF
credit. A reference TO the amount of banking
capital and the issues of paper credit put in
circulation in Great Britain by banks, and in
other Ways during the years 1884, 1886 and
1886, will show an augmentation Of the paper
currency there as mu III dispr6portionated 10
the real wants Of the trade as in the United
States. With this redundancy of the paper
cuerrncy, there arose in that country also
spirit of, adventurous speculation embracing
lhe whole range Of human enterprise. Aid was
profusely given to projected improvements
large investments were made in foreign stocks
and loans credits for goods were granted
with unboundcd lbcrality to merchants in
foreign countries; and all the means Of ac.
curing and employing credit were put in ac-
tive operation, and extended in their effects TO
every department Of business, and 10 every
quarter OF tho globe. The reaction was proper
toned in its violence TO the extraordinary char
actcr OF the events which preceded it. The
commercial community OF Greet Britain were
subjected TO the greatest difficulties, and their
debtors in this country were not only sudden
ly deprived Of their accustomed and expected
credits, but called upon for payments, which,
in the actual position Of things here, could on
ly be made through general pressure, and at
The most ruinous sacrifices.
In view of these facts, it would seem mpos-
sibe for sincere inquirers after truth TO resist
the conviction, that the causes Of the revulsion
in both countries have been substantially the
same. Two nations, the most commercial in
the world, enjoying but recently the highest de.
gree of apparent prosperity, and maintaining
with each other the closest relations, are sud
denly, in time Of peace, S without any great
national disaster, arrested in their career, and
plunged into state of embarrassment and dis
iress. In both countries we have witnessed
the same redundancy of paper money and 9TH
err facilities OF credit; the same spirit of spec.
ulation; the same partial successes the same
difficulties and reverses, and, at length, nearly
the same overwhelming catastrophe. The
most material difference between the results IN
the two countries has only been, that with us
there has also occurred an extensive deran.e-
ment in the fiscal affairs Of the Federal & State
Governments, occasoned by the suspension o.
specie payments by the banks.
The history of these causes and effects in
Great Britain and the U. S. is substantially The
history Of the revusion in all other CONNER.
clal countries.
The present and visible effects of these cir
cumstances on the operations of the Govern
ment, and the industry Of the people, point ou
the objects which call for your immediate at.
tention.
They are-to regulate by law the safe keep
ing, transfer. and disbursement oil the public
moneys; To designate the funds TO be received
e. paid by the Government; to enable the trca
sury TO meet promptly every demand upon it
TO prescribe the terms OF indulgence, and tht
mode Of settlement 10 be adopted, as well il
collecting from individuals the revenue that hai
accrued, as in Withdrawing it from former de
positorles. and to devise and adopt such lurthe
measures, within the constitutional competen
cy of Congress, as will be bes; calculated tC
revive the enterprise and promote the prosper
ty of the country.
For ihe.deposite, transfer, and disbursement
OF the reue2ne,. national and state banks hav
alwaysswith temporary and limited exceptions
been hprelotqre employed; but, although ad
vocatSs'of each system are still TO be found,
is opparelii. that the events Of the last few
months have greatly augmented the desire
long existing among the people of the U. S. t.
separate the fiscal operations Of the goysslr9@st
from thosc.e individuals or corposRi6hs. -
r. gain NJ create national bank, as Il -fsca
agent, N,paid be 10 disregard the popular will
twice selfmny and unequivocally expressed
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