The Camden weekly journal. [volume] (Camden, South-Carolina) 1853-1861, 1854-05-23
Higrra1rullg NRlna.
From aRe Washington JaaoS,
Condition of the Banks.


Condition of the Banks.
We give to-day comparative view Of the
condition of the banks in different sections of
the Union in ls50-'5l and lS53-'54"
While there are causes that affect the opera
tion Of the banks throughout the country, there
are others the force of which is felt most in
particular districts. As general rule, expan-
sions commence in the East and proceed thence
South and West, and coutractions follow the
same law.
The more rapid the development of the natu-
raj resources of region, the greater are the
apparent benefits resulting from bank expan-
sion; and the greater are the real evils that
result from a bank contraction. Hence, the
effects Of bank expansions and bank contrac-
tions are felt much more seusibly in the Mis-.
sissippi valley than in the Atlantic States.
A commercial or a manufacturing population
RECEIVERS from the effects of bank revulsion
much more easily than one that is purely agri-
cultural.
After the terrible revulson of 1S42-43, the
banks of Massachusetts were the first to right
themselves. By July, 1914, their current cred
its Circulation and deposits) were swelled to
twenty four millions, which was even six mil
lions more than it had in October, 1887. Since
then the banks in Massachusetts have been
gradually extending their operations; with oc-
casional and temporary intervals of contrac-
tion.
The banks in the other New England States,
aud in New York, were the next to recover
their position; but the banks, in the greater
tier of grain growing States, extending from
New Jersey in the East to Missouri in the
West, cannot be said to have recovered their
position till 1S46-'47, when new demand for
breadstufs sprung up in Europe.
The banks in the South and South west were
still longer in recovering themselves. But a
new demand for cotton sprung up, and then
they began rapidly to extend their operations
In two years, the banks Of South Carolina more
than doubled their circulation, increasing them
from IS, 236, 900, which they were in January,
ls49, to Sll,77O0OO in January, 1851. In
Georgia, the circulation was more than doubled
in one year. 1t was s4,llSOO0 in October,
lS49, and S9,slS,000 in December, 1885,
The Southwestern States still Jagged behind ;
but between October 1889, and January 1851,
the banks of Tennessee increased their issues
from s3,9l3O00 to S6,el4,O00.
After all, this expansion did not more than
bring the southern and southwestern States to a
level with the New England and middle States,
even it it did that. They err greatly who sup-
pose that paper money makes prices permanent
iy high. 1t makes them occasionally unnatu-
rally high; but in the revulsions that follow
prices are reduced so low, and remain low for
so long time, that it is question whether,
un an average OF years, prices are not lower
with us than they would be if We had only a
gold and silver circulating medium.
The low price of lands in many parts Of the
South and West is undoubtedly owing, in part,
to the annexation Of Texas, and to other causes
which have thrown immense tracts of new
lands into the market at merely nominal prices;
but it is in part owing to the disorderly bank
ing we had from 1885 to lS43, from the terri.
bio effects Of which many parts of the South
and West have not yet recovered.
BY scanning the table which We present to-
day, the reader will see to what extent the
banks in different sections of the Union have
expanded in the last three years. We see
nothing in the table that ought to excite ap-
prehension in regard to the Banks in the South,
West, or Southwest. But as we observed on
previous occasion, bank returns, though es.
sential, are not all that are essential to inform
ing a sound judgment Of the business pros.
poets of the country.