The daily union. [volume] (Washington [D.C.]) 1845-1857, 1854-05-13

We give to-day comparative view OF the condition Of
the banks in different sections OF the Union in ls5o5l
and lSb3I5A"
While there that affect the operation OF the
banks throughout the country there others the force Of
which is felt most In particular districts As general
rule expansions in the East and proceed thence
South and West and contractions follow the law
The more rapid the development Of the natural resources
of region the greater the apparent benefits resulting
nom bank expansion and the greater the real evils
that result from bank contraction Hence the effects OF
bank expansions and bank contracons felt much more
sensiby in Mississippi valley than in the Atlantic States
commercial or manufacturing population recovers
from the effects Of BAD reyuson much easily than
does one that is purely agricultural
After the terrible revulsion of s424a the banks OF
Massachusetts the first TO right themselves BY july
1874 their current credits circulation and depoes) were
swelled to twenty-four millions which six mil
lions more than il had in October 1881 Since then the
banks in been gradually extending their
with occasional and temporary intervals of
traction.
The banks in the other New England States and in New
York were the to their position; but the
banks in great tier of grangrowing States extending
from New Jersey in the East to Missouri in the West
not be said TO have recovered their position till 1916 49,
when new demand for our breastus sprung up in Eu-
rope. 49,
The banks In the South and Southwest sh longer
in recovering themselves But new demand for cotton
sprung up then they began rapidly to extend their OPP
eraons In two years the banks of South Carolina
than doubled their circulation increasing them from
ooo which they in January ls49, to $ll7700oO in
January 1851 In Georgia. the circulation was than
doubled in one year u $4lls,ooO in October ls49
and $9,slsOoO in December, 1850. The southwestern
States still Jagged behind but between October sie and
January 1851 the banks of Tennessee increased their issues
from $39I3,o0O to $6,sl4O0O.
After ALL this expansion did no more than bring the
southern and southwestern States level with the New
England and middle States even if it did that They
greatly who suppose that paper money makes prices per-
manently high 1t makes them occasionally uanauraly
high but the reyusions that follow prices reduced
so low and remain low for so long time that it is ques-
ton whether average Of years prices are pot lower
with us than they would be if had only gold and sill
circulating medium
The low price of LANDS in many parts Of the South and
West is undoubtedly owing, in part 70 the annexation OF
Texas and to other causes which have thrown immense
Of new lands into the market at merely nominal
prices but il is in part owing to the dsordery banking
we had from 1885 ls43 from the terrible effects OF
which many parts Of the South and West haye not yet
covered
BY scanning the table which we present to-day, the
reader will what extent the banks in different sec
of the Union have expanded in the last three years
We nothing in the table that ought to excite apprehen-
sion in regard the banks in the South West or South
west But we observed previous occasion, bank
returns though essential not all that essential to
forming sound judgment Of the business prospects Of the
country.