Spirit of the times. [volume] (Ironton, Ohio) 1853-1858, 1853-08-23
The Coming Commercial! Crisis.

dcd 10 tho CT rtcncy Of tho woll.l from
that single source. Australia has not
been 50 long in the field, and the pro.
duct has not, therefore, been so great. -
II would not be far out Of the way TO put
the product Of ihni country down at Gf
ty millions Of dollars. To he within
limits, We estimate the aggregate addition
to the gold currency of the woll |. within
the past six years 10 be about two hun
lrcd AMI fifty millions ofdollars. This
leaves for the arts and science the pro-
duct of all conn'r,cs but California &
Australia. 1t appears, by Official returns
received from time 10 time from the great
banking institutions Of Europe au The
United States, that there has been no
increase in the amount Of goll bullion
or coin in their vaults. The toia! a..
mount on hanl now is no greater ihun
1t was six years ago. 1t has not, there.
fore, become the basis Of their paper cur.
r1ncy. The increased value ol me,alc
currency must have passal llom the
minls into active circulation, or, at all
events, into the hanls Of the people. -
1t is pretty well established that it has
not served as foundation for the im.
mcnsc credit structure which has been
raised 10 such dizzy height in all
quarters of the globe. The progress OF
financial knowlc Igc, and the Genius Of
;hc aye, havo wipcl out all oil system
and a new orler Of lhings exists. What
woull have been considcrc an imposs
hi!ity few years since in banking, is
now daily pfactisc!, apparently with
impunity. There was llmc, within the
recollection Of md,Ilc,agei men, whell
gold and silver were absolutely ncccssa.
rs as basis of banking operations when
i, was consileic tie SOLE 'cpfCsen
tativc of the papc' currcnci OF ths coun.
try.
Since that time revolution has been
rcal,zcl; an Ike precious metals appia'
10 bc O! no consequence, except Tor The
purpose Of maxim change aui tfanspo..
ling from ono section of the world to an.
other, in regulating balances Of trade
We now fud banks sprnsing up by th,
Iozen in all parts Of the country, unJ
launching ou. at once into the mos, cA
panUc IN rvcmcnis. without five dollar:
Of col II OF silver in l!eil vaults. Gre Ii
is their basis. Papc: promises to pay
are the foundations Of the whole lutur,
initiation, and one class Of cfclis serve:
to support another. Ihcy are pilcl vi
one upon the other, the first having t,
sustain the wliolc, until the wcight be.
comes SO erca, that the whole fabric
iumblcs with trcmenious crash 10 li'
bottom.
Government AMI State stocks an.
bonds form the first s,fata; then comes
city, county.town and village bonds an,
AMI so on up, until the most WORTHLESS.
valuclcss paper securities form the cap
shcaf. There appears TO be no limit Il
the amount or variety, and the first war
70 ming the BUILDERS of this sp len tel s,ruc
turc get of its iottenncss Is complot,
proslralon and deslruction. sprcailn.
ruin and dismay among those engage
IN its erection.
During the last five years the Gnan
cial and commercial community has'
been rapidly rushing onwdrl Ill ih
e channel. They have been actively en
j. sagel in creating evidence OF debt,w'lh
j. out the remotest idea, apparently OF tn
d consequences. Bonds have bccn man
a ufac,uroI by the million, AMI SOL, el
d thcr at home or abroad to the hl9hlcs
u bidder, AMI frequently at seat sac
II rifcc.
y All sorts Of internal improvement
g bavo been commenced and partial!
t. completed, and every species OF extray
y asance entered into without the frs
II thought of where the means Of paymcn
IS were coming from. This rcckiessncs
d must have It's reward 1t mus, soonc
e or later reach i,> culminating point
3 We do rot intend here to point out th
- method of preventing ii, OF a remedy lc
= its cure. At present We shall comm
ourselves TO the fact that such stat
Of things exist as will bring upon us a
'e the evils which have heretofore so ol'n
J. followed such an artificial expansion
:. :, public and private lit, The large re
II ceip,s of goli from California AMI An
~ ! trala have for some time past an cor
- tinue to lulI The public mind into a la'
., cied security. 1t is arguel that so Ion
- :. as the supply of precious metals cor
=, - ,nucs unl;minishel there cnn.bo no da'
'e " ger Of revulsion. This is a danrero,
~ " delusion. The receipts Of gold in lar
1T sums will nlyhastcn the collapse an
=. make tmorc disastrous when it come
=" All the unmncl goll in the whole wor
u u woull rot restore public confIcn'
49, 49, when widely pros,rate'l. Credit, bo
~ =, public and private, is very delica'
'' sensitive elcmen, to dcal with. We nj
for many years go on prospcrously;; A
!, the future may be of promise. All m;
,!o be sunshine, and not a solitary spcck
~ visible in the financial or commercl
u horizon, when suddenly dense b!a'
," cloud may obscuie the whole, anil gloo
We ", AMI despair be visible where but m
"e ment before all was conf lence al
he hope. 49,.
hs We have known panIcj to take pc
session of the public mini as lns'a
,aneousIy as a summer cloud Will 81
out the midday sun. The imme'iI'
cause is seldom or never clearly sho'
bv but its effects is withering.
m ,men While credit is enormously lnIia'