The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1853-11-16
The Panic Money.

We have just conversed with a business
of our city, very recently from New
York. who says we can scarcely conceive
the pecuniary stringency in that city-that
there is no prospect of relief Tor some two
months, when, after all the houses whose
calculations ahead we're based on the re-
cent prosperous condition OF the country.
have failed, and the money changers can
hope for no more victims, the pressure will
be let off. and things allowed to go on
without further interruption. There can
be no doubt that this whole difficulty has
been brought about by mere spectators On
Change the bulls, who initiate fancy
stocks for profits in selling, and the bears,
who decry them, for cheap buying. What
will do more to shake business confidence.
than all the believing Of bulls, and the
growing of bears for a generation, is the
fact that the banks nave lent themselves TO
the production Of this panic, upongrounds
by no means jus,ifable in view of the ac-
tual relations OF the business Of the world.
The banks rave either become alarmed.
or pretended to be so In the latter case
they have most knavishly tempered with
the welfare Of community; while in the
former, their short-sightedness shows them
incapacitated to hold control Of the money
OF the country. For it is simply absurd to
say that there is any reason to fear a con-
vulsion. if business be left to itself. The
sound condition Of the country in every
point of view is undoubied. The amount
of fixed capital, and value of available
commodities were never greater than they
are now.
No better index of the strength of our
position could be had than the prosperity
of the National Treasury. The panic
then is baseless utterly, and the ugliest
feature of it, is seen in the i'll advised con-
duct Of the banks in producing it. No
parties are so highly responsible as they,
Tor any undue expansion of credits that
may exist, and if they have INDUCED the
spirit OF speculation beyond proper bounds.
they are under moral obligations. by the
implied and express objects Of their exist
ence, to graduate the return OF moderation.
rather than to precipitate such a stringen-
cy in the money market as must crush the
victims of their own over-indulgence.
The conduct of the New York Banks in
this emergency. has given but another IL
lustra,ion of the fact, that they are inca
pable. as at present constituted, of con-
trolling the financial affairs OF the country /.
either by want of moral honesty, public
spirit, or good sense end frmness OF
nerve.
We are not speaking at random. Sta
tistics abundant and unquestionable, are
at hand, to show that If the banks at the
head quarters Of this panic, had complied
with the dictates of prudence and patriot
ism throughout. instead Of the alarm Of
this hour. all would have gone on smoothly
and safely. Banks have no right to erist.
if they are thus to be forever adding to
every embarrassment that interested men,
stock gamblers, and Spectators can and
do generate at will. The only condition
upon which money corporations can long
be tolerated. is, by their W promises. that
they may give facilities to business. not
arbitrarily to cramp and cripple its opera
tons. 1t is time for them to understand
that they cannot much longer trife with
the patience of an intelligent and too for
bearing public. Let them but carry their
present unwise aad pernicious conduct
much farther. and they may be swept from
existence, when they least expect it.
Ohio Statesman.