Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1855-01-11
Causes Of the Present Hard Times.

Causes Of the Present Hard Times.
We extract the following from a
recent report on the condition Of the
Sub Treasury by VIM. n. Cough,
ESQ, one Of the most experienced
lfinanciers and political economists
| in the country:
The present troubles ip&lhc MON
ey market are owing chiefly 10 the
following causes:
i. Tile rapid extension, under a
fresh supply ofgold. Of a paper mon
ey banking system which rests on
principles radically unsound, espe-
ciaIly in sanctioning the issue of
notes Of small denominations.
2. The wars in the East, that
have caused capital to flow from
Europe to Asia, instead of taking its
usual course from Europe to Amer
lea.
3. The attempts 10 make in few
years numerous and extensive lines
of railroads, which would, in rea-
son, require many years to complete
them.
A. Extensive specuIations in wild
lands; caused by reducing the price
Of the public lands; and BY other
measures, which have thrown into
the market in few years as much
land as will supply the demand for
cultivation for many years.
t If there has been any excess OF
imports, that excess has been caus-
ed wholly and solely by excess Of
bank issues. Il is only link in the
chain of effects, like extravaganza
lin living, and all the other evils
which are the consequences OF pa
!, per currency mutations.
] Not one OF these causes singiy but
tire whole four combined, have pro-
duced the high rate OF interest
To suppose that any mode OF man.
aging its fiscal concerns which the
United States government might
adopt, could counterfeit such caus-
Ees, is a folly Of which no rational
/ -.
man will be guilty. Nothing but
the constant influx Of gold from
!, California has prevented general
bankruptcy; and il the regular sup
ply from that quarter should be IN
terrupted for only few months, il
would, so tensely has credit been
strained, be followed BY the most
disastrous results.
Its no more in the power OF the
general government, BY any fiscal
system it may adopt, to counteract
causes Of such a nature as those
above mentioned, than it would DC
to correct the evils that result from
the want Of industry, economy and
prudence, on the part Of individu-
ais. But if the constitutional treas
ury system is faithfully carried out
in all its parts, it will produce the
following results:
I l. II will increase the amount oil
gold and silver in the vaults OF the
banks, and The pockets Of the peo-
Iple.
2. Though il cannot control the
banks, it will, TO certain extent.
check them in their expansions, and
thus weaken the force Of their sub.
sequent CONT actions.
3. 1t will prevent those losses
which were SO froqaen: in former
Years, and which are The necessary
consequences Of suffering public
officers intrusted with the public
funds 10 apply them TO their private
uses.
/ a. 1t will give the government,
at all times, the control OF its own
funds, so that it can apply them to
the public service just when and
where it chooses control il could
not have il it should desposit the
public money in the banks, and the
banks should lend 1t to their custo-
mers.
i S. 1t will prevent those derange-
ments Of banking, exchange and
commercial operations which are
always caused by governments ef-
fecting large loans in bunk credits,
aud by paying off the public debt
through the medium Of bank ager-
cy.
6. Though il cannot prevent fire.
quent explosions Of banks existing