Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1853-06-01
WHOLE No. 4l3.
The Commercial Crisis.

have been added to the currency ofthe world from
that single source. Australia has rot been so
long in the field, and the product has not, there
fore, been SO great. 1t would not be far out of
the way to put the product of that country down
at fifty millions of dollars. To be within limits,
we estimate the aggregate addition to the gold
currency the world within the past six years,
Ito be about two hundred and fifty millions of dol
lars. This leaves for the arts and sciences the
product of all the countries but California and
Australia It appears BY official returns received
from time to time from the great banking nstitu-
Etons of Europe and the United States, that there
has been no increase in the amount of gold bull
/ lion or coinin their vaults. The total amount on
hand now is no greater than it was six years ago.
1t has not, therefore, become the basis OF the pa
per currency. The increased value of metallic
currency must have passed from the .mints into
active circulation or, atal events into the hands
of the people. It is pretty well established that
it has not served as a foundation for the immense
credit structure which has been raised to sucha,
dizzy height in all gu arters of the globe. The
progress of financial knowledge, and the genius
of the age, have wiped out all old systems, and
new order of things exists. What would have
been considered an impossibility fewyears since
in banking is now daily practised, apparently with
impunity. There was time, within the recol-
lection of middle aged men, when gold and silver
were absolutely necessary as a basis for banking
operations-when it was considered the solerep-
resentative of the paper currency of the country.
Since that time revolution has been realized;
ON oil. L.
quence, except for the purposes of making change.
and transportating from one section of the world
to another, in regulating balances of trade. We
now find banks sprngng up by the dozen in all
parts of the country, and launching out at once
into the mostex expended movements, without iye
dollars IN gold or silver in their vaults Credits
their basis. Paper promises to pay are the found
alton of the whole future imitation, and one class
|oferedits serves to support another. They arc
piled up one upon the other, the first having to
sustain the whole, until the weight becomes SO
great that the whole fabric tumbles with tre-
mendous crash to the bottom. Government and
State stocks and bonds form the first strata then
comes city, county, town and village bonds; then
railroad bonds, canal bonds, lank road bonds,and
on up, until the most worthless, valuless paper
securities, formgthe capsheaf. There appears to
be no liIntto the amount OF variety; and the first
warning the builders Of this splendid structure get
ofits roteness is a complete prosration and des-
tructon, spreading ruin and dismay among those
engaged in its erection.
During the past Eve years the financial and
commercial community have been rapidly rushing
onward in this camel They have been actively
engaged in creating evidences of debt, without
the remotest idea. apparently, of the consequenc-
es Bonds have been manufactured BY the mill
ion, and sold, either at home or abroad, to the
highest bidder. and frequently at great sacrifice.
All sorts Of internal Improvements have been
co mnenced and partially completed, and every
species Of extravaganza entered into without the
first thought ofwhere the means of payment were
coming from. This recklessness must have its
treward. It must sooner or later reach its cul-
minatng point: We do not intend here to point
out the method Of preventing It or remedy for
Eits cure. AT present we shall conine ourselves
10 the fact that such state of things exists AZ
will bring upon US all the evils which have here
tofore so often followed such an arti6cial expaR-
sion of public and private credit. The large re-
ceipts of gold from California and Australia have
for sometime past and continue to lull the public
mind into fancied security. It is argued that
SO long as the supply of precious metals con-
tiaues undilninished there can be no danger of a
revulsion. This is dangerous delusion. The
receipts of gold in large sums will only hasten
the collapse and makeit more disastrous when il
! comes All the unmined gold in the world would
Ifrlotresto public confidence when once widely
prostrated Credit, both public and private, is
\ very. delicate, sensitive element to dealwith.-
! We may for years 60 on prosperously, All the
/ future may be full5of promise. Allmay be sum
shine and not a solitary spec be visible in the
! financial or commercial horizon, when suddenly
"a dense black cloud may obscure the whole, and
gloom and despair be visible where but moment
before all was confidence and hope. We have
known panics to take possession of the public
mind as instantaneously as a summers cloud
will shut ont, the midday sun. The immediate
5cause is sellom or never clearly shown, bur us
i effect is whitening
AZ When credit is enormously inflated tne nnan-
cial and mercantile systems OF the world are IN
an unhealthy. diseased condition, and we know
! not ,vbat nouent it may take an acute form, and
..an. f,tal toimauy whose condition particularly
s,,lieces them to itsinfuence. That we are ap-
proaching such astate ofthings with rapid strides
| no one who coolly and calmly watches the ex-
pansion of credit, the extension of extravaganza,
the hsadlong waysin which all are rushing into
every species. OF Indebtedness, can for amoment
Itdoabt Our impetus has already reached such q
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