The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1845-01-21

vana TO consolidate the State loans make them paya-
Die az one period issue certificates with coupons,
~nich coupons will be made receivable for any State
dues taxes, tolls &C. in addition this bill authorize
ing the establishment Of system Of banking similar to
the free banking Of this will soon be introduced
The organs of the two great political parties in this
city have for time past been loggerheads in
gard to the contraction of the immense debts Of Of
the States Each party the ether Of involving
the States In the financial difficulties they labor under
very superficial view is taken this subject and party
spite shows itself In all their remarks Both parties
equally guily-one is much to blame as the other and
upon the heads Of the leaders Of each should be visited
the condemnation Of the people The mania 70. works
ofintsrnsl improvement commenced Immediately after
the completion OF the Erie canal The success of that
woIk' and the agreeable disappointment many expo
renced when that canal commenced operations changed
the current public opinion and created very strong
mania in favor of internal improvements This feeling
induced the Legislatures other States to enter the field
and through the immense loans contracted in Europe
were enabled to carry out very extensively tho works
contemplated The works were in the hands OF
speculatipg politicians. who had one eve to their
own pocket and one to the interests Of the public
state credit at that time stood high and the capitalists Of
Europe were esger to get State stock bearing Ave. six
and cent interest," in preference to the two and
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amount were contracted part of which was used to CON-
pete public works part to establish banks in several
States and part to fill the pockets of the politicians con.
trolling and handling the money The portion Of these
loans contracted to provide capital for the banks of seve
raj States created eagerness Tor stock In all the
panes then starting raising the scrip in many to
premiums Of ten to twenty per cent and led very
great expansion in the banking operations of the country
producing imitation in the creating an sxpan
SION credits and immense specuatons in every species
Improperly Individual credits became as much extended
as State credits and together they led to the
importations Of 1884, 'a5 and So which, in ;urn bank
rupted the commercial classesc mpelng suspension Of
specie payments by the banks and general explosion
State credit amidst this revolution and destruction of in
dvidual credits, still mantii very high character
aud State stocks used immense extent in iau
dating individual Indebtedness abroad The revulson of
1887 was followed by slight improvement in CONNER.
cal affairs in 1888 and 49, when the United States bank
was struggling to stem the tide setting against so
strong but the revival only temporary the bank
pended. after having hypohecated immense amount of
States stocks in Europe security for its liabilities and
soon after, in ls4O the first blow was given to State
credit by the State of Mississippi repudiang contract
ofa doubtful character The second revusion-in ls4l
completely exploded the bubble the collapse carred
down other States and reputation spread every
uoh ot tue country. Inc financial condition OF Pennsy
vanis and the poverty Of the people, brought about by
the most outrageous extravaganza in public aars and
mutations and contracons in the currency compelled
that State to follow the example Of Mississippi and pub
cy declared her inability meet promptly the legal
mands of her creditors. The delinquency of Pennsylva
mia, of the Oldest and weahest States in the Union
destroyed ell confidence, and created the intense
anxiety to the likely to be pursued by others
Mary land Louisiana, Illinois, pdisna Michigan and Ar
kansas followed the example States more abun
dainty able to meet their liabilities. We annex table
giving the names and debts Of delinquent States