The Lancaster ledger. [volume] (Lancaster, S.C.) 1852-1905, 1855-01-03
Causes of the Present Hard Times.

We extract the following from a recent
report on the condition of the Sub .Treasu-
ry by VIM. NJ. Gonge, Esq one of the most
experienced iinanciers and political econo-
mists in :he country:
The present troubles in the money riar-
ket are owing chiefly to the following eau
ses:
1. The rapid extension, under n fresh sup
ply of gold, of paper money banking sys
tenn, which rests on principles radically un-
sound, especially il sanctioning the issue of
notes OF small denominations.
3. The wars In the East, that have cans
ed capital to flow from Europe to Asia. in
stead of taking its usual course from Europe
to America.
8. The attempt. to make, in few years,
numerous and extensive lines of Railroads,
which wonhd. in reason. require many years
to complete them.
4. Extensive speculation 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 Us will supply the demand for
cultivation for many years.
III there has been any excess OF imports,
that excess has been caused wholly and
soiiy by excess of bank issue. IL is only n
link in the chain OF effects, like extravaganza
in living and all the other evils w ic:l ire
the Consequences of paper currency infia-
tions.
i Not oae Of these causes singly but the
whole four combined, have produced the
high rate of interest. To suppose that any
mode OF managing its fiscal concerns which
the United States Government mig ht adopt,
could counieract such causes, is folly of
which no rational man will be guilty. Moth
ing bnt the constant influx of gold fiom CAL
ifornia has prevented general bankruptcy |;
and 1t the reguIai supply from that quarter
should be interrupted for only flew months,
it would, SO tensely has credit been strained,
be followed with the most disasterous re-
suits
Ii Is no more in the power of the General
Government, by any fiscal system it ean
adopL to eounteract causes of such nature
as those above mentioned, than il would be
to correct the evils that result from the
want OF industry, economy, and prudence,
on the part ofihdiMduals. But ii the Con-
stitutional treasury system is faithfully car.
ried out In all iis parts, it will produce the
following results
4 Itwill increase the amount of gold and
silver in the vaults Of the banks, and the
pockets of the people.
g. Trough IL csslpot control the Banks,
their expansisss,ss and thus weaken the force
OF their subseqpent contractions.
8. IL witlpssgeut the losses which were
, so frequent 10 former years, and which are
the necessary consequences of suffering pub
lic officers intrusted with the pabkc fund
TO apply them to private usys
4. II viii give the government. at all
times the control Of It's own funds, so that
10 cannot apply them to the public service
just when aud whore it clio0ses--a control
Lc0nld not nave ii il should deposite the
pablo money in the banks. and the banks
yhoeld lsnd il to their customers.
8. Is win prevent those arrangements of
banking, exchange und commereiai oppcra-
.tions which are always caused by govern
nents eticeling barge loans In bank credits,
and by Psyiag Of the pablic debt thfough
ths medinna agency. .zEa
6. Though Il cannot lseqnent ex-