The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1851-10-30
Whence Comes the Present Money Pres-
sure


sure 7
What was the cause of the great rnoneta-
ry crisis that overlook this country in is37-s,
and covered it, as il were with a. pail FIVE
long years? II was over much credit. Too
much speculation and zoo little labor. Buy.
ing solar outran paying, thai the whole
country was eveniuslly wound up with the
spendthrift's nd--overwhelming baukmpt-
CT. A ruin that nothing short Of that gseaI
spouge, the NATIONAL bankrup, act could
wipe out. People would be rich at a single
bound. They had not patience TO wait on
the slow process of time and labor. The
consequence is known. In Great Britain
two or three years ago, railroad mania
overran that nation A map of the country
tesembied the face of a chequer-boarl, 80
closely and thoroughly was it intersscted
with lines Of roaas. For tie construction Of
these, companies industriously employed
themselves in the saleof stocks and borrow
ing of money. A railroad there was thonsh'
TO be the only road TO fortune, and eveeybo-
DIV seemed 10 be pressing forward for ticks
et Men bought and sold shares, in lines Of
unmade roads, to the amount of hundreds
Of thousands OF dollars, and lived extrava.
ganliy for years on the result of their traffic
in them. The end came, and it was such an
end as always follows course OF proAigacy.
England suffered revulsion, second only TO
our own, few years before. Confidence
was prostrated, business vas at a stand and
ruin and desolation left an impress that time
has hardly yet worn away. 1t is the misfor-
tune of nations as well as of individuals,
that the lessons Of experience, in affairs of
debt and credit, are never remembered. TIE
people of the United States have already
forgotten the general bankruptcy in 1910 /;
and though the specuaiions in town lots and
"oher fancies" have not been so great as
they then were, debts have been piled as
high, and probably nearly as much money
has been lost in COPPER mines and projected
railroad, as was swallowed by the "fancies"
of 1910. Like causes produce like effects
and those who are inquring for the cause Of
the present stringency in the money-market
we point TO the immense Sums that have,
within The las, few years, been invested in
railroads and other works of internal i'm
provement; 10 the monster lines of ocean
steamers, and 10 our speculations in Califor-
MIA aud the large balance believed yet 10 be
due our Atlantic cities from that State. From
Maine 10 Texas there is scarcely a city,
county, town, or borough that has not, for
two or lhres years past been in the market
with their bonds, borrowing money--at par,
if they could, and if not at par, then al ten,
twenty or fifty per cent discount While The
banks continued to swell the currency and
10 afford accommodations TO all who asked
them, this system of imptovidence was NOT
felt. Blu, as the United States is not the
whole world, nor its commercial relations 10
trade between lis own ports, this cheapen-
ing Of the currency eventually attracted at
lenlion abroad, and we have been for the
last year or two flooded with foreign fabrics.
Every other nation could underwork US, be-
OauoC hho Oduho uud huuC uoHOJ cp CuCup
that ii took great deal of it 10 buy a lit:le.
Other nations, with more valued currency,
could produce manufactured goods cheaper,
and afford 10 sell them lower, IN our town
market, IN spite Of protective lax of from
90 10 80 per cent. Our currency, OF coin
and paper was of equal value al home, SO
long as the banks KEEP, open, but those who
flooded our market with foreign productions
always discriminate in favor of the coin
They never took ouf bank paper-that was
left for us, until within few months the
proportion Of coin 10 paper was found to be
so wide that the banks, for self-preservation,
were forced TO curail accommodations were
narowed-paper was called in, and then
commenced The pressure. The banks here.
tofore the fountain of money, have the great
malestrom that swallows everything. The
present stringency, though produced by the
banks. may save the country from much
more serious consequences. The errors TO
be complained Of are adherent with our
banking syslem---a system which privileges
certain individuals TO make money out OF
lampblack and rags, at pleasure. 1t is the
bank and paper money, and the spirit and
speculation and profisacy that they provoke
much more than the tariff that has produ-
ced our present troubles. A redundant cur
rency will nullify any tariff. The banks
were wrong in Increasing their liabilities 10
the public, and individuals were equally
wrong in being seduced into their debt. All
The evil may be traced to the one. cause--
paper money--and yet so many friends has
this paper money purchased, tina! it is likely
10 shuttle its sins upon innocent shoulders by
crying mad-dog againt the tariff.--Ledger.
The Virginia Election.
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