The daily union. [volume] (Washington [D.C.]) 1845-1857, 1854-12-03


| otism, one can doubt viii do the rest A. j. G.
Columbus Statesman and Democrat
REVIEW OF DEMOCRATIC FINANCIAL POLICY
1887 AND 1854
There very striking points of difference between the
monetary reyulsion that commenced in 1886 and that
which has suspended the business life of the country
Then the federal and State governments involved
in the general wreck-the former suddenly becoming
bankrupt although having millions of paper money in its
treasury
Now the general and State governments unembar
rassedthe credit and of both being ample for
any crisis of peace which may happen
The debts of the States then nearly large as
now, their credit entirely prosrate and in addition
they had upon their hands gigantic schemes Of internal
improvements just commenced.
There now no embarrassments or burdens by the
federal State governments that tH by The people
Democratic policy has accomplished this The States have
entirely divorced themselves from all nternampro
schemes and railroad corporations stimulated in many
instances embark in wild and utopian projects by in
judicous and unconstitutional grants of the public do
MAN, and counties cities, &c, alone the sufferers
from tempest which, from 1887 to 1912, involved the
State governments and drove them to the very brink of
| reputation.
In 1887 the treasury of the United States broke down.
with It's Golfers full of bank rags and the government
compelled to resort to the miserable expedient of issuing
shinpaster in the form of treasury notes. maintain its
existence In 1854 it has vaults of its own and they
filled with ample cash means to meet promptly every de-
mand upon the treasury.
The aggregate Indebtedness however of rail-
road improvements is much greater than in 1881, for
the canal slacwaer and turnpike improvements of that
day. We have data by which to estimate the
of this Indebtedness but do hesitate to say that in
Ohio the debts of counties cities, and recentlyor
gained wilderness townships in swamps only Fit to be in
habed by wild cat banks cannot be less than fifty mil
lions of dollars And not dollar of this immense in
debednes has been authorized by laws passed since the
adoption of the present constitution. This legacy of
county and municipal debt among the lees of the old
wing regime, which about the last bequcst of the
wings under the old constitution This financial tempest
is painfully destructive, but all interests would have
yielded to the blast had it not been for the foresight and
good of the democracy of the States of Ohioand
Indiana, in crushing out this system of stock subscrip
tons by nterdcts in their organic laws.
The present constitution of Ohio limits the public debt
cuts off plunderaws by prohibiting the State from becom
ing stakeholder in any company association formed
for any purpose whatever prevents the assumption by
the State of these debts of counties cities &C. and in
hbits the general assembly from authorizing any
ty city, &C. by vote Of its citizens otherwise, to
become stakeholder in any joint stock company,
poration association whatever The constitution of
Indiana adopted by the democracy of that State in the
same year. believe contains similar restraints These
provisions will be remembered were assaed by the
wings and what they then predicted the source of
ruin and the arrest of all public improvement will prove
the salvation of these States Had these constitutions
been defeated and wing policy prevailed, this system
of stock subscriptions by the local governments would
have continued ping up debts beyond the power of the
enumeration table to reach, and which would have been
used as a basis for FREE BANKING-and now, the
first approach of the present Storm the banks would all
have been in ruins and county, city town. and township
governments the State would have been hurried into the
abyss of bankruptcy and wholesale reputation No hon
est man of mind will gansay this proposition
1t is this railroad mania which has crowded the system
FIR advance of the of the country which has sunk
millions of money in unproductive schemes and which is
in the market competing with the current business
the State Offering runous rates for money thereby
gravating and proongng the existing monetary troubles
The managers of multtudes Of railroad schemes have 1t
now in their power themselves from hopeless bank
ruptcy and afford substantial relief to the country by post
poning the prosecution of their projects until the wants OF
commerce and propitiuus times shall call for their
completion Urging forward unfinished and unproductive
schemes ut time like this when the rates of money and
labor are SO high and when the collection of stock sub
scripons from individuals is difficult, has power
ful tendency to prolong existing embarrassment
In 1881 Mr. Van Buren, in his message to the extra
sion of Congress estimated the amount of gold and silver
in the country at S70000,o00 Sso0oO0o0 Now the
annual productions of the California gold mines exceed the
entire then in the country The annual products
of the California mines from ls4s 1853 inclusive have