The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1840-01-18


at length reached TO the astounding sum of
more than tUo hundred millions of dol.
idrS.
The banks have acted as the brokers, a.
"A large scale, through whose agency tbA
state loans have been negotiated with for.
eign capitalists. But let the legislatures Of
the several states creating loans TO them
selves the honor and responsibility of far
nishing the chief aimenl to sustain our cum
brous credit system. 1t is no doubt true,
that the inordinate increase Of banks of late
years, has been partly produced by the i'm
mense accumulation of state credits, and
has, in some dtg.se. stimulated the action
of the legislatures of the several states in
authorizing the same, by alfording agents
TO negotiate and customers TO consume the
avails of the stocks, when negociated.
Until within the last year we have been
able, not only, to borrow money, without
difficulty, OH state stock in Europe, but 10
pay the interest arising on former loans, by
new ones. We felt little of lhe inconveni-
eGce of this bloated system of credits, and
seldom reflected that day of reckoning
would come, when we could thus pay our
debts no longer. States, banks, corpora
tons and indivuals, all moved forward in
harmonious, unison, borrowing all they could,
without reference to their future ability and
means of repayment. The deusion is at
last over. State stocks are now an unsala-.
BILE drug in foreign markets, and we are cal
led upon for the interest on our permanent
loans, and have no means Of paying it, un-
less we export specie, rely on the remels
avail of our agricultural productions, OF dis
pose of more state stock at ruinous sac
rifre, if indeed we can dispose Of it at ALL,
The time for sober reflection has arrived,
and the different states must now determine
whether they will, or not, persist in course
of policy which has thus far been produc-
tive of such serions evils. Shall the states
of ttis Union plunge deeper into debt and
embarrassment, OF shall they make econo.
my and prudence their motto resolve TO ex-
tricate themselves as soon rs possible, and
be free ! This is the question, and trust
Pennsylvania is ready to take her stand with
those who follow the distates of prudence
and economy.
A system of credit, acted on with eau
ton, and sound Judgements not only wise
and judicious. but indispensable to an en-
lightened business community. The hon.
esty, industry, and capacity OF poor man
is his only capital, and unless it gives him
credit where he is known, there is little
practical difference between the condition
Of the honest and dishonest, the capable
and the ignorant man. The station OF men
in society, on the opposite principle, would
Ia h,.t tba;. Ell ba
regarded as a bOotless qualification. This
is not the doctrine of nature, or Of our Dec
laration of Independence, ,and American sys-
TEN of government.
The credit system will be seldom abused
in the case of individuals; but not so in that
Of corporations and governments. WneR
men Judge in'their individual relations, they
weigh things well, when as members OF
corporations and governments, their caution
corresponds with their share Of the respon-
sibi!ty. Our present condition illustrates
the truth Of this position, and calls aloud on
the representatives oil the people to pause
and reflect. Let no more state debts, not
indispensibly necessary TO preserve the
faith and honor of the staIes, be contracted;
let no certificates of loans be issued. and NO
commercial commodities be imported for
few years. We will thus overcome our
present difficulties, and re-estabish our
credit at home and abroad. 9'his is the
only course dictated by prudence and hem
| esty.
| have thus at some length, brought to
your view several considerations, essential
to Just and full knowledge Of the impor'
lant subject of our finances. have shown
| trust, that the leading causes of our pre-
sent arrangements, lie at the very founda-
ton OF our system Of legislation for the last
twenty years. The original defects and
imRrmities OF our banking system, have
been aggravated by our system of public
credits, and must continne TO be so, as leHs
as the same course is pursued. II must be
evideut from what has been already said'
that our banking system however Objee-
tionable in its origin, is now fasteRed upSn
US, and connected with all our business oP.
erallons, SO that it would be productive OF
more mischief to cut ii up by the roots.
than to let it stand reformed AMI regulates
in such manner as your experience and Wis
dom may enable you TO devise.
/ proceed to make such suggestions and
1 - IL. .t.as 81 "a n