Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1852-05-07

INC peOplc against jllc consequences OF an IN
fated currency and an unrestrained system
of credit, which then pervaded our business
circles, and affected deeply domestic arrange
ments. But his warning was not needed un-
til it was too late to arrest the evil. The
great bank expansion of that period engen-
dered spirit of desperate speculation and
habits OF prodigality which distinguished
alike the career of States, corporations and
individuals. And who can contemplate with
out regret and shame, the disgrace and mis-
cry which followed as the legitimate conse-
quence. The imaginary fortunes of individ-
uals were dispelled as fog before the rising
sun, and the meshes of the speculator were
rent assunder as cObwebs before the torrent
of revulsion that ensued. States, corpora
tons and individuals were prostrated beneath
It's weight-their plighted faith became by
word and scof, and their credit was hawked
about in the market and offered for mere
fraction of its nominal value Whilst the un-
wary citizen who had been mislead by this
| artificial state Of affairs, including widows
and orphans, whose means, under the force
OF the delusion, had been invested in schemes
purely speculative, found themselves thrown
houseless and pennlless upon the charity Of
the public. Nor is this all. The effect Of ex-
tending the banking capital of this State, in
1886, by the charter Of the United States and
other banks, from little over fourteen to ex-
ceeding flty-eight millions, and It's sudden
reduction in few years afterwards. to an
active capital of not less than nineteen mil
lions, was scarce less disastrous The eOnse-
| quenceS Of our State credit, to the trade and
commerce Of our metropolis, to the interests
OF all classes Of our people, and to the honor
/ OF the Commonwealth abroad, are topics too
unpleasant to be discussed at this day, and
/ only alude to them as so many admonitions
! against the tendency Of the effort now making
/ to increase the amount OF banking capital,
/ evidently calculated to produce a somewhat
similar state of affairs.
| These expansions are delusive and unprof-
! liable, and as shown by their past history,
! clearly inimical to the rights and interests of
/ labor. From an able report made to Congress
/ on this subject in 1910, / have gathered some
very interesting facts which speak language
/ that cannot be misunderstood. They are to
the effect that from 1884 to 1886, the in
/ crease OF paper currency in the United States
was near IS per cent.,-that the advance in
! the price Of that kind of real estate, which
was constantly in the market, was over one
/ hundred per cent.,-in stocks, real and fancy,
about one hundred and twenty per cent.,-in
-four, pork, corn. E., about sixty per cent,
and III the price of labor, the source of all
real wealth, but little over sixteen per cent.
! But not so when the contraction comes, for
7 then labor bears the first shock, and depreci-
/ atcs most severely. In every view, therefore,
I is fuctuating currency prejudiced to the in
/ terests of the laborer. Labor is the last thing
to rise in price, and does so least, with an
| imitation of the currency, but suffers first and
most severely under the contraction. Besides,
during the times Of such initiation, the labOrer
is forced to receive his wages at the standard
price Of a sound currency, in that which is
[ deprecated, and purchare his necessaries at
the high prices consequent upon such de-
preston. Such expansions, in addition, are
I adverse to the real prosperity of the country
and retard rather than advance it. The
artificial growth produced by the expansion
I is more than counteracted by the paralyzing
influence of the contraction and the aggregate
prosperity is less than it would be were the
country left to its steady natural advance.
But how clearly impoverishing is the effect
( Of an inflated. currency upon all our State and
I National interests, now closely pressed by
/ foreign competition. 1t virtually opens our
ports to invite such rivalry against all these
pursuits, and no rate Of tariff that the wis
dom Of Congress can devise, within any rea-
. sonable limit, can counteract its influence
1t greatly enhances the nominal prices of
goods and commodities i'll this, above what
they will bear in other countries, whilst at
the same time it retards rather than faclE-
tates their production. 1t thus gives the for
eign producer the opportunity of manufac-
turing at the low rates of his own country,
and selling at the inflated prices of ours for
he receives his pay not in our deprecated
paper but in gold and silver. 1t is this state
Of the currency, more than any other feature
in the policy of this country, that enables the
foreign manufacturer to compete, if not to un-
dersell the American producer IN our own
markets.
But where is the evidence that so large an
increase of the banking capital is required?
and why authorize such an increase all at
one tinc? During the official services Of my
two last predecessors, covering a period of
nine wears, but four new banks were created;
and when has Pennsylvania been more pros
perous than during that time? When, since
first burthened By her heavy debt, did her
credit stand higher? And when did the Ia
Dor of her citizens reap 4 better reward? She
has, during the whole time, stood erect, main
tanned her faith, aud by the proper exercise
of her own inherent elements of wealth, mas
been steadily extricating herself from the
embarrassments brought upon her by spirit
of prodigality, transIuscd throughout the
whole country as the consequence oi the eX-
pansions of paper money, to which have al
ready referred.
There is now near nineteen millions Of
banking capital in the State, of which about
four and half millions of dollars are invest
cd in stocks, bonds, DC, business not ne
cessarily connected with banking, nor con-
teinpIated in the creation of banks. This fact
furnishes some evidence that at times there
had been more banking capital than the le
climate business of these institutions seemed
to require, and certainly there is nothing in
the present condition OF the country to jnsti-
fy so large an accession to our paper medium.