Star of the Kanawha Valley. [volume] (Buffalo, Va. [W. Va.]) 1855-1856, 1855-12-19
GOVERNORS MESSAGE.
CONCLUDED !

&
our whole monetary system exploded, and
the ruinous use Of appreciated paper
threatened bankruptcy othe treasury and
ruin to the country.
Again abou. the year 1890, another
explosion took place, and ,desolation anu
dismay ensued. Specie had disappeared,
and deprecated paper filed the vacuum.
A general stagnation in business was The
consequence, followed bytstay laws; pro-
perty laws, and other Intellectual expedi-
cnts, all of which were brought into re-
QUESTION to avert the catastrophe, but II
vain. Debtor and creditor suffered alike.
produce and labor .were comparatively
valueless, and every interest in the
country become stricken and paralyzed.
The more recent but equally disastrous
explosion Of 1887 is within the recollec-
ton ofall. Itcame when We were at peace
with all the world--when commerce flour
ished, and the beautious hand of ProEi-
dence has blessed us with propitious sea
sons and abundant harvests--when the
country was flooded with promises to pay
spscie which had ceased to circulate, be-
cause it bad been sent abroad, locked up
in the vaults Of banks, or bought up BY
the brokers, preparatory 70 the coming
crisis, foreseen only by the shrewd spec
ulator, who fattens upon the misfortunes
Of his unsuspecting neighbor. Then, in
less than one revolving moon, eight hun
dred banks. simultaneously closed their
doors. and herme sically sealed their iron
safes, Indignantly spurnihg from their
counters the unfortunate holders of their
paper. whose credulity had induced them
/, to rely upon delusive promises. And
what strange or unforeseen event pro.
duced this sudden, unlocked for and dis
astrous calamity? "A highly respectable
and intelligent committee, in their report
assigning the reasons for the failure of the
banks in the city of New York and else
where say, "The immediate cause which
compelled the banks Of New York city to
suspend specie payment on the 10th Of
May last, are well known. The silnulta-
neous withdrawal Of the large public de-
posts. and Of excessive foreign credits,
combined with the great and unexpected
fall IN the price OF the principal articles
ofour exports, with an. import of corn
and. breadstuffs, such as had never before
occurred. andwith the consequent inabil-
ity Of the country, particularly Of the
southwestern States, to make the usual
expected remitanees, did, at. one and the
same time. fall principally and necessarily
on the greatest commercial emporium Of
the Union.z After q long and most ar
duous struggle, during whieh the banks,
though not altogether successfully resist
ing the imperative foreign demand for the
precious meals, were gradually deprived
Of great portion Of their specie, some
unfortunate incident Of a local nature, OPP
Grating in concert with other previously
exciting causes. produced distrust and
panic. and, finally, one of those general
runs, which, If continued, no bank that
issues paper money payable on demand,
can ever resist. and which soon put il out
Of the powerof those Of this city to sus.
! tainspecie payments. The example was
followed BY. the banks throughout the
whole country. with as much rapidly as
the news of the shs rension IN New York
reached them, withou: waiting for an ac-
tuat run, and principally il not exclusive
" on the alledged ground Of the effects 10
beapprehended from such suspens ion.-
Thus. whilst the New York city banks
are almost drained of their specie, those
in other places preserved the amount
which they held before the final catastro.
phe:'' ii
Such are reasons assigned at that day:
and may We not reasonably expect that
similar causes will produce similar results
in future? ri. T. @,aizI
Since then, and up 10 the present time,
we have had frequent expansions and con-
fractions in the money market, bordering
on suspension Of specie payments by the
banks, which has only been prevented BY
the almost miraculous influx Of gold from
California. This alone has prevented b
repetition of the scene Of 1887. Indeed
but for this time apparent interposition. OF
Providence, there is abundant reason to
believe that every bank in the country
would ere this have suspended, and that
We should now be languishing, under a
heavy monetary pressure. This fortu-
nate occurrence thus opportunity inter
posed, had not even remote connection
with the paper system, except SO far as
to invite us to substitute currency in
trinsically valuable and permanent in its
character, for one yaluless in itself and
deceptive on its face. ii. n
Il isa we'll established fact, and avert
to il with pleasure, that the State Banks of
Virginia have generally been judiciously
conducted, and will compare favorably
with any similar institutions Of other
States. II may be said that Virginia has
made the most Of q bad system; and yet
the effect has been 10 raise and depress. at
short Intervals, not only the price Of la
Dor, but Of every article the laborer is
compelled to purchase for the subsistence
Of himself and family. To give ticti.
tious value 70 every species of property, to
multiply and enlarge schemes of specula-
ton, and thereby fostor and encourage an
artificial and transient prosperity, BY
which the unwary have been BETRAYED in
70 an enlargement +of business and in.
creased Indebtedness, and when time for
complying with their obligations came,
the banks have found it necessary to cur.
fail aud withhold aca ynmodat;orse- -,